RentoMojo files RHP for Rs 1,255.6 crore IPO
The rental subscription company goes to market on FY26 profit that grew far faster than revenue, with an offer for sale that makes up almost 88 percent of the issue.
- The issue totals Rs 1,255.6 crore, made up of a Rs 150 crore fresh issue and a Rs 1,105.6 crore offer for sale across 2.73 crore shares.
- The offer for sale is almost 88 percent of the issue, so most of the money raised goes to existing shareholders rather than into the company.
- FY26 revenue from operations was Rs 387 crore, up 45.5 percent, while profit after tax was Rs 104.2 crore, up 142 percent from Rs 43.1 crore.
- The business runs 2.54 lakh live subscribers across 29 cities, supported by 20 warehouses and 82 experience stores.
RentoMojo has filed its red herring prospectus for an IPO of Rs 1,255.6 crore. The issue is a fresh component of Rs 150 crore plus an offer for sale of Rs 1,105.6 crore across 2.73 crore shares, which puts the OFS at almost 88 percent of the total. The price band is Rs 384 to Rs 404 per share, targeting a valuation of Rs 4,200 crore at the upper end. Anchor bidding is on 8 September and the subscription window runs from 9 to 11 September.
The financials are the reason to look. FY26 revenue from operations was Rs 387 crore, up 45.5 percent from Rs 266 crore in FY25. Profit after tax was Rs 104.2 crore, up 142 percent from Rs 43.1 crore. Profit grew far faster than revenue, which is what operating leverage looks like in an asset-heavy rental model once the fleet and the network are already paid for and the next subscriber rides on top of them.
The footprint behind those numbers is 2.54 lakh live subscribers across 29 cities, 20 warehouses and 82 experience stores. Selling shareholders include Accel India, Edelweiss, IDG Ventures India, ValueQuest, Madison India, GMO and founder Geetansh Bamania.
Of the proceeds, Rs 70 crore is earmarked for debt repayment and Rs 42.5 crore for warehouse and experience store leases and licences.
Two things are worth carrying out of this if you run a physical-asset business. First, the profit line moving faster than the top line is the number to reproduce, and in a rental model it comes from utilisation on assets you already own rather than from adding units. Check whether your own margin gains are coming from the installed base or from new capacity, because only the first one keeps working.
Second, note where the money actually goes. Only Rs 150 crore of the Rs 1,255.6 crore is fresh capital entering the company, and the RHP already assigns Rs 70 crore of it to debt repayment and Rs 42.5 crore to leases and licences. When a listing gets quoted at you as evidence that a category is being funded, check the fresh issue rather than the headline size.
Zane’s analysis draws on original reporting by Entrackr. Read the original report.