A hectic day for Indian primary markets, as six mainboard issues are set to open today, September 9, amongst which the initial public offering of rental and subscription services provider Rentomojo will be in high focus.
The Bengaluru-based firm’s Rs 1,256 crore issue is open for three days, starting today, and will close on September 11. Its issue price band is fixed at Rs 384 to Rs 404 per share. Investors can bid for 37 shares and thereafter.
Ahead of its opening, Rentomojo had mobilised Rs 376.07 crore through its anchor book.
Here’s all you need to know about the Rentomojo IPO
Of the total float of Rs 1,255.57 crore, the equipment leasing firm will raise fresh equity of Rs 150 crore through 37.15 lakh shares. The majority portion of Rs 1,105.57 crore will be raised through the offer for sale route, as investors will offload 2.74 crore shares of face value Rs 1 each.
Rentomojo’s IPO is being handled by Motilal Oswal Investment Advisors, Axis Capital, and IIFL Capital Services, while KFin Technologies is the registrar to the issue.
Retail applicants who wish to participate in the IPO need to bid for a minimum of one lot comprising 37 shares, equating to an investment of Rs 14,948, and the maximum they can bid for is 13 lots.
For small high-net-worth individuals, the lower limit is fixed at 14 lots, while the upper limit is set at 66 lots. As for big HNIs, the minimum lots they need to bid for is 67.
In the unlisted markets, its stock is trading at a grey market premium of 33%, translating into a listing price of Rs 538, based on the upper end of the price band.
This reflects a profit of Rs 134 per share, and gains of Rs 4,958 per lot. However, readers must know that GMP is not an official metric to determine the listing price and fluctuates based on market mood and sentiment.
The company’s offer will close for public bidding on September 11, and its share allotment process is likely to wrap up by September 15. Bidders are expected to be credited with their shares and refunds on September 16, and Rentomojo is expected to list on the NSE and BSE on September 17.
“At the upper price band of Rs 404, Rentomojo is valued at a post-issue P/E of 39.4x based on FY26 earnings. Considering its market leadership, strong growth, improving profitability and favourable industry opportunity, we assign a SUBSCRIBE rating to the issue,” said SBI Securities in a report.
However, it added that the company’s business remains capital intensive and exposed to subscriber defaults, rental demand, geographic concentration and execution risks associated with maintaining asset utilisation and service quality.