Nowadays, people in big cities want to avoid huge expenses of buying new furniture or expensive TV-fridge. Instead, they consider it smarter to rent these items as per their needs. The famous online rental company ‘Rentomojo’, which has transformed itself into a big business umpire by fulfilling this need of yours, is now coming to create a stir in the stock market. Market regulatory body SEBI has given the green signal to this company to launch its IPO.
How much will the IPO cost and what is the mathematics of shares?
According to the documents (DRHP) submitted by the company, this IPO is going to have mainly two big parts. In the first part, the company will issue new shares (fresh issue) worth Rs 150 crore. At the same time, under the second part i.e. Offer for Sale (OFS), the existing shareholders of the company will offer their 2.84 crore shares for sale in the market. Let us tell you that the company had submitted its file to SEBI on 1st April this year, on which now the firm seal of launching the IPO on 6th July has been given.
What will the company do with the money received from IPO?
This question definitely arises in the mind of every investor who bets in the stock market, what will the company do with their money? The company has given a very clear answer to this in its draft. Rentomojo will invest a large part of the money received from the new shares in reducing the burden of its old debts. Apart from this, the rent or license fees of its warehouses and experience stores spread across the country will also be paid from this amount. The company will use the remaining money to accelerate its corporate work.
How much is Rentomojo’s business spread?
Rentomojo is a tech-based company that delivers electronic goods and furniture directly to customers (D2C). If we look at the latest data till 30 September 2025, the network of this company has spread in 22 big cities of the country. At present, more than 2.28 lakh active customers are availing its services. To meet the demand of customers without any delay, the company has built 21 big warehouses spread over 4.44 lakh square feet. Besides, it also has 67 experience stores running, and the company has a huge portfolio of more than 7 lakh 28 thousand rental products.
What is the condition of the company’s earnings?
Before investing money in any IPO, it is very important to see the profit of the company. In the half year ending September 30, 2025, the company has earned a strong total revenue of Rs 176.61 crore from its operations. In this, the net profit after paying tax was Rs 61.38 crore. Whereas, in the last financial year (FY25), the total revenue of the company was Rs 265.96 crore and profit was Rs 43.11 crore. The responsibility of successfully launching this big IPO in the stock market has been entrusted to big companies like Motilal Oswal Investment Advisors, Axis Capital and IIFL Capital Services.
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