Rentomojo IPO

 Rentomojo IPO — Quick Take

I went through the RHP. Here’s my simple view:

Business: Furniture, appliances & electronics on monthly subscription/rental.

FY26:

* Revenue: →₹387 Cr

* PAT: →₹104 Cr

* 2.53 lakh live subscribers

* 29 cities

Financials: Strong improvement. Revenue almost doubled from FY24, while PAT grew much faster — showing better profitability.

 IPO: →₹1,256 Cr

* Fresh Issue: →₹150 Cr

* OFS: →₹1,106 Cr

* ₹70 Cr → Debt repayment

* ₹42.5 Cr → Lease payments

 Key Concerns:

* Asset-heavy business

* Debt & lease liabilities

* Promoter-related NCLT dispute

* Large OFS component

Valuation: At ₹404, market cap ~₹4,000 Cr → P/E ~38x.

My View

Business: Good 

Financials: Strong 

Governance: Watch 

Valuation: Expensive 

 Good business, but not a cheap IPO.

The key question is not  Is Rentomojo a good company?

It is "How much should we pay for its growth?"

For educational/research purposes only, not an investment recommendation.