Rentomojo eyes ₹1,255 crore IPO as four firms line up ₹3,362 crore in issues
Furniture-and-appliance rental platform Rentomojo’s IPO is set to open September 9, comprising a ₹150 crore fresh issue and ₹1,105 crore offer for sale. It plans to use ₹70 crore of fresh proceeds to repay debt.
What happened
Four Indian firms plan ₹3,362 crore IPOs opening September 9, led by furniture-and-appliance rental platform Rentomojo’s ₹1,255 crore issue. Rentomojo will use
Key facts
- ₹3,362 crore cumulative IPO fundraising
- Rentomojo ₹1,255 crore IPO
- Rentomojo price band ₹384-404 per share
- Rentomojo fresh issue ₹150 crore
- Rentomojo OFS ₹1,105 crore
- Rentomojo ₹70 crore debt repayment
- Rentomojo borrowings ₹258 crore
- Manipal Payment ₹805 crore IPO
- Karamtara ₹875 crore IPO
- LCC Projects ₹427 crore IPO
Why this matters
Rentomojo’s listing could create a public valuation benchmark for the rental-commerce category, though the largely secondary structure suggests limited near-term balance-sheet firepower for acquisitions.
What to watch
- Subscription levels across qualified institutional buyers, non-institutional investors and retail investors.
- Final IPO pricing relative to the indicated valuation and any anchor-investor participation.
- Post-listing trading performance and free-float liquidity.
- Debt reduction, interest-cost savings and net-debt-to-equity changes after the issue.
- Quarterly active subscribers, churn, average revenue per user, rental asset utilization and contribution margin.
- Bad-debt provisions, refurbishment/write-off costs and inventory replacement needs.
- Competitive pricing moves from furniture retailers, appliance brands, marketplaces and other rental providers.
- Use up to ₹70 crore of fresh proceeds for debt repayment, reducing interest expense and improving leverage metrics.
- Emphasize contribution-margin expansion, customer retention, asset utilization and refurbishment economics during investor marketing.
- Seek improved procurement terms, co-branded financing or exclusive supply arrangements with appliance and furniture manufacturers.
- Prioritize expansion in dense urban clusters where delivery, pickup and maintenance costs can be spread across a larger active rental base.
- Existing investors may use the IPO price discovery to reassess exit timing and valuations for adjacent rental and recommerce companies.
Also reported by
- The Hindu BusinessLine — 1h after first sighting