Rentomojo IPO subscribed over 1.5x so far on Day 2; GMP jumps to 35%

Fresh updates from the financial markets indicate that The initial public offering (IPO) of Rentomojo remained in firm demand on the second day of bidding, with the offering receiving 1.67 times subscription as of 10:20 am on September 10, according to NSE data.

The Rs 1,256-crore IPO received bids for 3,64,65,239 equity shares against 2,17,72,311 shares on offer. The non-institutional investor portion was subscribed 3.11 times, while the retail investor category saw 1.78 times bids.

In the grey market, Rentomojo shares were commanding a premium of 35.40 percent over the IPO's upper price range of Rs 404 per share on the morning of September 10, according to Investorgain. At this premium, the implied grey-market price stands at around Rs 547 per share.

Read Additionally: Kanohar Electricals IPO subscribed over 11x so far on Day 3; GMP stands at 35%

Grey market premiums are unofficial indicators and are fuelled by market sentiment and speculation. They do not guarantee stock-exchange debut upside and should not be viewed as a measure of the firm's financial performance or fundamentals.

Ahead of the IPO, Rentomojo boosted Rs 376.07 crore from anchor market participants on September 8. The firm allocated 93.08 lakh equity shares to anchor market participants at Rs 404 apiece.

The anchor book saw participation from global market participants including BlackRock, Goldman Sachs and Theleme Partners. Domestic mutual funds accounted for 60.41 lakh of the anchor shares through 30 schemes across 16 fund houses, including Kotak Mahindra AMC, ICICI Prudential AMC, HDFC AMC, Aditya Birla Sun Life AMC, Mirae Asset, Edelweiss, HSBC Mutual Fund, Motilal Oswal AMC and Invesco.

Insurance firms, including HDFC Standard Life, ICICI Prudential Life, Aditya Birla Sun Life, Edelweiss Life and Bajaj Life, subscribed to 12.62 lakh shares worth around Rs 51 crore.

The IPO opened for subscription on September 9 and will close on September 11. The price range has been set at Rs 384-404 per equity share.

The public offering comprises a fresh offering of shares worth Rs 150 crore and an offer-for-sale (OFS) of up to 2.73 crore equity shares worth Rs 1,105.56 crore by promoters and existing market participants.

Of the fresh offering proceeds, Rs 70 crore will be used to repay debt. Rentomojo had total outstanding borrowings of Rs 258.3 crore on a consolidated basis. Another Rs 42.5 crore has been earmarked for lease rentals or licence fees for warehouses and experience stores, with the balance allocated towards general corporate purposes.

The firm noted a 142 percent year-on-year gain in earnings to Rs 104.2 crore for the fiscal year ended March 2026, compared with Rs 43.1 crore in FY25. Topline rose 45.5 percent to Rs 387 crore from Rs 266 crore during the same period.

Backed by Accel India and ValueQuest, Rentomojo operates an omnichannel subscription platform through which customers can rent furniture and appliances. Its model combines online ordering with physical experience stores across India.

Motilal Oswal Investment Advisors, Axis Capital and IIFL Capital Services are the merchant bankers managing the IPO.