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E-Retail/ E-Commerce
Rentomojo Limited IPO
₹1256 Cr · Fresh Issue & OFS · E-Retail/ E-Commerce
Price Band
₹384 – ₹404
Lot: 37 shares (₹14,948)
GMP (Grey Market)
₹141 (+34.9%)
Est. listing ₹545
Issue Size
₹1256 Cr
Fresh Issue & OFS
Market Cap
₹4246.30 Cr
At upper band
P/E Ratio
40.7x
P/S: 11x
Listing Date
17 Sep 2026
BSE & NSE
IPO Timeline
✓
Opens
09 Sep 2026
✓
Closes
11 Sep 2026
📋
Allotment
14 Sep 2026
₹
Refund
15 Sep 2026
📈
Listing
17 Sep 2026
IPO India Hub: Subscribe
Conviction
7/10
The company trades at 1.25× the retail sector midpoint with a 26.5% net margin and 115.7% PAT CAGR, meeting Subscribe criteria. Strong execution and bullish 31% GMP offset the material risk of high OFS (88.1%) diluting existing shareholders.
Our Analysis — Key Points
✓ Strength
Exceptional profit growth trajectory
Net profit has grown 115.7% over two years (₹22.4 Cr to ₹104.3 Cr), while revenue CAGR is 41.9%, demonstrating operating leverage and margin expansion. The 26.5% NPM is well above the 15% threshold and signals strong unit economics in the asset-light rental model.
✓ Strength
Valuation aligned with sector norms
At 40.7× P/E, the company trades at 1.25× the retail sector midpoint (32.5×), placing it in the Subscribe zone. With 43.55% EBITDA margin and 25.14% ROCE, the valuation is justified by operational efficiency and capital returns.
⚠ Risk
Extreme OFS dilution to shareholders
88.1% of the ₹1256 Cr issue is OFS, meaning only ₹149 Cr flows to the company for debt repayment and capex. This is well above the 30% threshold and signals promoters are exiting significantly, reducing their holding from 21.49% to 19.94% post-issue.
⚠ Risk
Promoter commitment weakens post-listing
Promoter holding falls below 20% after the issue, which is below the 60% benchmark for strong alignment. Combined with heavy OFS, this raises questions about long-term strategic commitment and governance stability.
₹ Valuation
Fair valuation with margin support
The 40.7× P/E is 1.25× the retail sector midpoint and qualifies under the 1.5× threshold when NPM exceeds 15%. The 11× P/S is reasonable given the 26.5% net margin, though investors should monitor if margin compression occurs as the company scales.
👁 Watch
Post-listing debt reduction execution
Track whether the company deploys the ₹70 Cr debt repayment efficiently and maintains the 0.84× D/E ratio. Any deterioration in leverage or margin compression would signal operational stress in a competitive rental market.
Top Analyst Reviews
| Analyst / Firm | Rating | Known For | Review |
|---|---|---|---|
| IPO India Hub Our independent review |
Original analysis based on DRHP & public financials | This page | |
| Dilip Davda Chittorgarh.com |
India's most followed independent IPO analyst | Search on Chittorgarh → | |
| Capital Market (CM Rating) CapitalMarket.com |
Widely-cited "New Issue Monitor" reports | Search on CapitalMarket → | |
| ICICI Securities ICICIdirect Research |
SEBI-registered broker research desk | Visit ICICIdirect → | |
| IPO Guru Analyst Leaderboard ipoguru.in |
Ranks 49 analysts by real IPO outcome accuracy | View leaderboard → |
External links go to each platform's IPO section — search for "Rentomojo Limited" to find the specific review. IPO India Hub does not represent the accuracy of third-party ratings.
Company Snapshot
Revenue
₹386.99 Cr
Net Profit
₹104.30 Cr
Industry
E-Retail/ E-Commerce
Issue Type
Fresh Issue & OFS
Promoters
GEETANSH BAMANIA
Lead Managers
Motilal Oswal Investment Advisors, Axis Capital and IIFL Capital Services
Quick Actions
Frequently Asked Questions
Subscribe. The company trades at 1.25× the retail sector midpoint with a 26.5% net margin and 115.7% PAT CAGR, meeting Subscribe criteria. Strong execution and bullish 31% GMP offset the material risk of high OFS (88.1%) diluting existing shareholders.
The current grey market premium (GMP) is ₹141, which is 34.9% above the upper band price of ₹404. This implies an estimated listing price of around ₹545. GMP is informal and unregulated — treat it as a sentiment indicator, not a guarantee.
The minimum lot size is 37 shares. At the upper band price of ₹404, the minimum investment per retail application is ₹14,948. You can apply for up to 13 lots (₹194,324) under the retail category (up to ₹2 lakh).
The IPO opens on 09 Sep 2026. It closes on 11 Sep 2026. Allotment is expected on 14 Sep 2026. Refunds initiate on 15 Sep 2026. Listing on BSE and NSE is on 17 Sep 2026.
The lead managers for the IPO are Motilal Oswal Investment Advisors, Axis Capital and IIFL Capital Services. Check the SEBI filing for the registrar details.
Our analysis recommends <strong>Subscribe</strong>. The fundamentals support applying before the issue closes on 11 Sep 2026. The minimum investment is ₹14,948 for one lot (37 shares). The company trades at 1.25× the retail sector midpoint with a 26.5% net margin and 115.7% PAT CAGR, meeting Subscribe criteria. Strong execution and bullish 31% GMP offset the material risk of high OFS (88.1%) diluting existing shareholders.
Our analysis recommends <strong>Subscribe</strong>. The fundamentals support applying before the issue closes on 11 Sep 2026. The IPO is priced at a P/E of 40.7x. Market cap at issue price is ₹4246.30 Cr. As with all IPOs, please read the DRHP and assess your own risk tolerance before investing.
You can apply via UPI through your broker's trading app (Zerodha, Upstox, Fyers, etc.) or via ASBA through your net banking portal. The minimum lot is 37 shares at ₹404 each, costing ₹14,948 per application. The issue closes on 11 Sep 2026, so apply before that date. Step 1: Log in to your broker or bank app. Step 2: Go to IPO section and search for 'Rentomojo Limited'. Step 3: Enter the number of lots and UPI ID. Step 4: Accept the mandate on your UPI app.
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