Rentomojo shares experienced a 1% decline in their second trading session on Friday, September 18, yet the stock continues to trade 44% higher than its IPO price of ₹404. The stock opened at ₹566.95 on the BSE, hit an intraday low of ₹524.95, and closed at ₹532.95, demonstrating strong investor interest despite the day's decline. The stock had made a strong debut on Thursday, September 17, listing at ₹482.45 on NSE, marking a 19.42% premium over the issue price of ₹404 per share. The stock had previously hit a high of ₹532.95 and low of ₹480 during trading, with over 22.42 lakh shares traded on the BSE counter.
The IPO demonstrated exceptional investor demand across all categories, with QIBs portion subscribed 177.29 times, NII category at 67.93 times, and retail investors at 15.59 times subscription. As per Live Mint, the IPO received bids for 158.68 crore equity shares against 2.18 crore shares offered. The company reserved not more than 50% for QIBs, not less than 15% for NIIs, and not more than 35% for retail investors. The total issue size stands at ₹1,256 crore at the upper price band, comprising fresh issue of ₹150 crore and OFS of 2.73 crore shares. The public issue opened for subscription on September 9, 2026, and closed on September 11, 2026. Ahead of the public issue, Rentomojo had raised ₹376 crore from anchor investors, including Goldman Sachs Funds and BlackRock Global Funds.
The IPO has delivered exceptional returns for early investors, with Nazara Technologies founder Nitish Mittersain set to clock a 152X return on his investment. Mittersain, who holds 226,920 shares with a weighted average acquisition cost of ₹2.65 per share, is selling 148,460 shares worth approximately ₹6 crore at the upper price band. Other institutional investors are also poised for substantial gains - Accel India is set to generate around 8.63X returns on its ₹317 crore OFS, while Madison India will likely unlock around 7.22X on its ₹96.9 crore share sale. Rajeev Chitrabhanu, the company's first investor, is also set to generate around 26.6X returns from his ₹12.4 crore OFS. The founder Geetansh Bamania is offloading shares worth ₹34.3 crore through the OFS, while other shareholders including Japan-based Mitsui Sumitomo Insurance Venture Capital and Pratithi Investment Trust are also participating in the offer.
According to Business Standard, Rentomojo maintains a market-leading position with approximately 42%-47% share of organised home furniture and appliance rental subscription revenue in FY2025. The company serves 253,825 live subscribers across 29 cities as of March 2026, with a repeat rate of 50.41%. As per Business Standard, the company has expanded significantly, serving 851,184 live products and operating 82 experience stores across 17 cities as of March 2026. The company reported strong FY26 performance with revenue rising 45% to ₹387 crore and PAT increasing 142% to ₹104 crore, demonstrating improving scale and profitability despite its asset-heavy business model. The company has maintained occupancy levels above 80% in recent financial years and as of September 30, 2025, had 728,773 live products and 227,511 subscribers across 22 cities, with offerings spanning furniture and appliances from brands such as Haier, Wakefit, Livpure and Duroflex.
While analysts see long-term potential in Rentomojo's business model, they have flagged valuation concerns following the sharp listing gains. As per The Economic Times, Shivani Nyati, Head of Wealth at Swastika Investmart, cautioned that "the company has delivered fabulous growth during the last two years, and we believe going forward… Rentomojo is a play on urban mobility," but noted that "the 19% listing pop has already priced in much of the near-term optimism, and at around 41x FY26 P/E, the valuation cushion remains thin." The analyst suggested a stop loss at ₹430 apiece, below listing price, to protect against reversal of listing day gains. Dr. Ravi Singh, Chief Research Officer at Master Capital Services Ltd., advised investors to monitor Rentomojo's ability to sustain rental revenue, deliver earnings growth and maintain profitability in the near term. Despite the positive growth trajectory, analysts recommend a wait-and-watch approach rather than fresh accumulation at current levels, citing the need for sustained improvement in profitability and asset-utilization metrics before recommending fresh investments.
