Rentomojo shares settle maiden trade nearly 32% above IPO price; what should investors do now?

After an 18.81 per cent listing pop, shares of Rentomojo Ltd climbed further to settle their maiden trading session on a strong note. On BSE, the stock settled at Rs 532.95, up 31.92 per cent from its initial public offering (IPO) price of Rs 404.

The Rs 1,256 crore IPO comprised a fresh share sale of Rs 150 crore and an offer-for-sale (OFS) of up to 2.84 crore shares worth Rs 1,106 crore.

Incorporated in 2012, Bengaluru-based Rentomojo is an online rental and subscription platform offering furniture, appliances and other home essentials. The company operates a full-stack asset lifecycle model covering procurement, refurbishment, servicing, reverse logistics and redeployment. As of March 31, 2026, it had more than 2.5 lakh live subscribers across 29 cities.

Ahead of its IPO, Rentomojo raised Rs 376.07 crore from over 40 anchor investors as it allocated 93,08,667 shares for Rs 404 apiece. Its anchor book included names like Kotak MF, HDFC MF, Goldman Sachs, BlackRock Global Funds, Aditya Birla Sun MF, Mirae Asset MF, Bandhan MF, Edelweiss Trusteeship Company, HSBC MF, Invesco India MF, Helios MF, Bajaj Life Insurance, ITI MF, JM Financial MF and more.

The company plans to utilise Rs 70 crore from the fresh issue towards repayment/prepayment of borrowings and Rs 42.5 crore towards lease rentals or licence fees for warehouses and experience stores. The remaining proceeds will be used for general corporate purposes.

What analysts say

Ravi Singh, Chief Research Officer at Master Capital Services, said, "Rentomojo has a strong growth profile, with revenue rising sharply and profitability improving significantly in FY26. Its subscription-based rental model can benefit from rising demand for flexible consumption, especially among young customers in Tier 1 and Tier 2 cities. However, the business is asset-heavy and faces risks from depreciation, asset utilisation and competition. The 40.73x post-issue P/E also indicates a relatively high valuation."

Singh added, "Investors should closely monitor growth sustainability, margins, asset efficiency and valuation. Revenue increased 45.5 per cent to Rs 387 crore in FY26, while PAT jumped 142 per cent to Rs 104 crore, showing strong business and profit growth. High valuation, asset depreciation and the large OFS component remain important factors for investors to consider. Investors may consider it only if they are comfortable with the high valuation and confident in sustained growth, margins and asset utilisation, or consider waiting for a correction."

Kranthi Bathini, Equity Strategist at WealthMills Securities, noted that the company's business model is fresh and the stock saw a strong response on debut. "Investors can consider booking some profits. For any serious investment, one should wait for the next quarterly results and management commentary," Bathini stated.