Last updated: 11 September 2026, 10.06 am
Quick Take
- NSE data at 10.06 am on 11 September put the book at 3.64 times. Qualified institutional buyers were at 0.43 times, high net worth investors at 10.22 times.
- The Rs 1,255.57 crore issue is about 88% offer for sale. Only Rs 150 crore of fresh capital reaches the company.
- Bidding and the UPI mandate both close at 5 pm on 11 September. Allotment is due 15 September and listing 17 September.
In This Article
Rentomojo IPO Subscription On The Final Day
The Rentomojo IPO closes at 5 pm on Friday 11 September, the third and final day of bidding. The exchange refreshes the book through the day, and at 10.06 am the four investor categories were not moving together.
StartupFeed read the NSE bid file rather than the aggregator sites. Qualified institutional buyers had bid for 26,84,202 shares against 62,05,779 on offer, which is 0.43 times.
High net worth investors were at 10.22 times. Retail investors sat at 2.65 times. Employees, who get a Rs 20 discount on each share, bid 2.81 times their reserved block.
Inside the institutional column, which carries half the offer, the split is sharper still. Foreign institutional investors accounted for 24,80,554 of the 26,84,202 shares bid for. Domestic mutual funds had bid for none of the institutional quota.
| Category | Shares offered | Shares bid for | Times subscribed |
|---|---|---|---|
| Qualified institutional buyers | 62,05,779 | 26,84,202 | 0.43 |
| Non-institutional investors | 46,54,335 | 4,75,44,593 | 10.22 |
| Retail individual investors | 1,08,60,114 | 2,87,87,480 | 2.65 |
| Employees | 52,083 | 1,46,261 | 2.81 |
| Total | 2,17,72,311 | 7,91,62,536 | 3.64 |
These are NSE figures alone. Bids placed through the BSE are counted separately, so the combined book across both exchanges reads higher than 3.64 times.
Retail money arrived mostly at the cut-off price. Of the 2,87,87,480 shares retail investors bid for, 2,35,58,048 were cut-off bids.
The book has built steadily. It closed day one at 1.97 times, with QIBs then at 0.41 times.
Why the mutual fund line is empty
An empty mutual fund line looks alarming until you check the anchor book. The offer set aside 93,08,667 shares for anchor investors, and anchors are allotted a day before the issue opens to the public.
At Rs 404 that block is worth about Rs 376 crore, and anchor investors are institutions. Their money is already in the deal, committed before public bidding opened. It does not appear in the QIB column the exchange refreshes through the day.
Domestic mutual funds took the biggest block of that anchor money. Sixteen fund houses across 30 schemes bought 60.4 lakh shares for about Rs 244 crore. That is roughly two thirds of the anchor book.
Five life insurance companies took another 12.6 lakh shares for about Rs 51 crore. Between them, funds and insurers hold most of the anchor book.
So the empty mutual fund line in the public book does not mean the funds stayed away. It means they came in early, at a fixed price, a day before you could.
Institutional buyers also habitually bid in the last two hours of the final day, so a thin morning column is normal. At 10.06 am the QIB portion was still short by 35,21,577 shares. That is about Rs 142 crore at the top of the band.
What to watch before 5 pm
The UPI mandate cut-off is 5 pm, the same hour bidding stops. Allotment is due 15 September and listing 17 September. KFin Technologies is the registrar.
The offer document sits with SEBI public issue filings. The full issue terms are also laid out on the IPO data pages.
The wider market is not helping the mood. The Nifty 50 was at 23,284.55 around 10.09 am on Friday, down 0.82% on the day.
Motilal Oswal Investment Advisors, Axis Capital and IIFL Capital Services are running the book, and the shares list on both the NSE and the BSE.
Rentomojo is not alone in the queue. IndiQube cleared SEBI earlier, Urban Company has been preparing its own listing, and the exchange itself is heading to market.
The single number worth refreshing at 5 pm is the QIB column, not the headline total of 3.64 times.
One number tells you how the day ended. If the QIB column closes above one time, the institutional portion filled without help. If it closes below, the book leaned on retail and high net worth money.
Rentomojo has fixed its IPO price band at Rs 384 to Rs 404 per share. The public issue opens on September 9 and closes on September 11, 2026. At the top of the band, the Bengaluru company would be worth about Rs 4,246 crore.
The offer is worth Rs 1,255.57 crore in total. Its red herring prospectus sets the anchor investor bid for September 8. Shares list on the BSE and NSE on September 17.
Here is the catch. Only Rs 150 crore is fresh capital for Rentomojo. The rest, about Rs 1,106 crore, is existing investors selling shares. That is an offer for sale, called an OFS. Less than 12% of the money reaches the company.
What is Rentomojo’s IPO valuation?
At Rs 404 per share, Rentomojo would command a market value of about Rs 4,246 crore. The figure rests on a post-issue base of roughly 10.51 crore shares. Some reports put it near Rs 4,006 crore instead.
The pricing is the striking part. The proposed value is about five times the level of Rentomojo’s last private funding round. So the company enters the market at a much higher benchmark while raising little new money for itself.
Rentomojo was founded in 2014 by Geetansh Bamania and Ajay Nain, both IIT Madras graduates. It rents furniture, appliances and home essentials on a subscription model. As of September 30, 2025, it ran 21 warehouses across 22 Indian cities.
The offer is 100% book building, with half reserved for qualified institutional buyers, 15% for non-institutional investors and 35% for retail. Anchors took 93,08,667 shares before the issue opened.
At the Rs 4,246 crore post-issue valuation the company is asking about 11 times its FY26 operating revenue of Rs 387 crore. That is about 41 times its FY26 profit after tax of Rs 104.3 crore.
That profit multiple flatters the business. A one-time Rs 36.6 crore tax credit sits inside the FY26 profit figure.
Rentomojo FY26 profit and the tax credit
Rentomojo’s restated profit after tax jumped 142% to Rs 104.3 crore in FY26. A year earlier the figure was Rs 43.1 crore. On the surface, that looks like a rapid climb.
Look closer before you cheer. Profit before tax in FY26 was only Rs 67.66 crore.
A one-time tax credit of about Rs 36.6 crore lifted the reported number to Rs 104.3 crore. So part of the headline jump came from the tax line, not the core business.
The underlying business did grow, and it stayed profitable. Operating revenue rose 45.5% to Rs 387 crore in FY26, up from Rs 266 crore. Revenue has more than doubled from Rs 192.7 crore in FY24.
Operating cash flow was healthy at about Rs 172.87 crore in FY26. That matters for an asset-heavy rental business that keeps buying stock. The order book, not a margin trick, did most of the work.
One number moved the wrong way. EBITDA margin slipped to 41.5% in FY26 from 43.6% a year earlier. EBITDA still rose 38% to Rs 163.5 crore, and it means earnings before interest, taxes, depreciation and amortisation.
How much does a Rentomojo lot cost?
Retail investors must apply for at least 37 shares. At Rs 404 per share, one lot costs Rs 14,948. That is the smallest cheque a retail buyer can write.
The allotment is expected to be finalised on September 15. Shares should reach successful bidders on September 16. Trading then begins on September 17.
| IPO detail | Figure |
|---|---|
| Price band | Rs 384 to Rs 404 per share |
| Total issue size | Rs 1,255.57 crore |
| Fresh issue | Rs 150 crore |
| Offer for sale | About Rs 1,106 crore |
| Lot size | 37 shares (Rs 14,948) |
| Subscription window | September 9 to September 11, 2026 |
| Listing date | September 17, 2026 (BSE, NSE) |
| Valuation at Rs 404 | About Rs 4,246 crore |
One lot is 37 shares. At the Rs 404 upper band that costs Rs 14,948, and at the Rs 384 floor it costs Rs 14,208. Retail bids are capped at Rs 2 lakh, which allows 13 lots at the top of the band.
Eligible employees can bid up to Rs 5 lakh and get Rs 20 off each share. The face value is Re 1 and bids move in ticks of Re 1. Bidding runs from 10 am to 5 pm on each of the three days.
Who is selling in the Rentomojo IPO?
Existing backers are the main sellers. Accel, Chiratae Ventures and ValueQuest are offloading shares worth about Rs 1,106 crore. The money from those shares goes to them, not to Rentomojo.
This is common for a mature, cash-generating startup. Early investors want a clean exit after more than a decade. Rentomojo trimmed the OFS slightly from the 2.84 crore shares proposed in its March draft.
Rentomojo also offers a Rs 20 per share discount to eligible employees. The company had received SEBI observations on July 6, 2026. It first filed its draft red herring prospectus on March 27, 2026.
What this means for you: Read the profit line before you apply. Rentomojo is genuinely profitable, but strip out the Rs 36.6 crore tax credit and the FY26 jump looks far smaller.
StartupFeed Insight
Rentomojo is one of the few Indian consumer startups to list while genuinely profitable, and that alone will draw interest. But the shape of this offer tells the real story. Only Rs 150 crore of this is fresh capital. The other Rs 1,106 crore is a secondary sale. This is an exit for Accel and the early backers, not a war chest for growth. The five-times step-up from the last private round is the number to question, since the tax credit flatters FY26 profit. Watch the anchor book on September 8. If institutions fill it at the top of the band, retail demand on day one will likely follow. If they hesitate, the pricing was the problem.
By Avinash Mishra, Business Correspondent
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Disclaimer: This article is for information only and is not investment advice. StartupFeed and its authors are not SEBI-registered investment advisors. Please speak to a SEBI-registered advisor before investing.
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