Nowadays, many people working in big cities prefer to rent new furniture or expensive home appliances instead of buying them. From TV, fridge to sofa, everything is easily available on rent. Rentomojo, one of the online rental and subscription companies that has converted this need into a big business model, is now going to enter the stock market. Market regulatory body SEBI has given official approval to this company to bring its initial public offering i.e. IPO.
IPO size, mathematics of shares
According to the Draft Red Herring Prospectus (DRHP) submitted by the company, this IPO will mainly have two parts. First, the company will issue new equity shares worth up to Rs 150 crore. The second part will be of Offer for Sale (OFS), under which existing shareholders will sell their 2.84 crore equity shares in the market. This entire process started on April 1 this year, when the company submitted its draft papers with SEBI. Now on July 6, green signal has been received from SEBI to launch IPO.
What will the company do with the money?
This question definitely comes in the mind of any investor that what will the company do with the money it raises from the market. A clear answer to this has been given in the draft paper. Rentomojo will use a large part of the proceeds from this fresh issue to repay its old debts. Apart from this, the lease rental or license fees of the company’s warehouses and experience stores spread across the country will also be paid with this money. The remaining capital will be used to improve the general corporate functioning of the company.
How big is Rentomojo’s business?
Rentomojo is a technology-based direct-to-consumer platform that delivers furniture and electronic goods to the masses. If we look at the data till September 30, 2025, the company’s network has spread to 22 cities of the country. At present it has more than 2.28 lakh active subscribers who are taking its services regularly. To meet the demand of customers, the company has 21 big warehouses, whose total area is about 4.44 lakh square feet. Besides, the company also operates 67 experience stores. It has a large portfolio of more than 7 lakh 28 thousand active products.
What is the condition of the company on the earnings front?
It is most important to see the profit of the company before investing. In the half year ending September 30, 2025, the company has achieved a revenue of Rs 176.61 crore from its operations, while its net profit after paying tax has been Rs 61.38 crore. Earlier, the total operational revenue of the company in the financial year 2024-25 (FY25) was recorded at Rs 265.96 crore, while the profit after tax was Rs 43.11 crore. Let us tell you that the responsibility of successfully launching this IPO in the market has been given to Motilal Oswal Investment Advisors, Axis Capital, IIFL Capital Services. These three leading companies are acting as book-running lead managers of this issue.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.
