Rentomojo Ltd IPO
Status: Closed
Overview
IPO date
09 Sept 2026 to 11 Sept 2026
Face value
₹ 0 per share
Price
₹ 384 to ₹404 per share
Issue Size
31,078,400 shares
(aggregating up to ₹ 1255.57 Cr)
(aggregating up to ₹ 1255.57 Cr)
Allotment Date
15 Sept 2026
Listing at
NSE
Issue type
Book Building
Sector
Miscellaneous
Unlock Stock of the Month
T&C*
Strengths vs Risks of Rentomojo Ltd
Know the pros & cons
Strengths
- Consistently profitable D2C player since Fiscal 2023, driven by predictable recurring revenues, acyclical performance and high return on capital employed.
- Leading furniture and appliance rental platform, where scale enables higher subscriber engagements - creating organic demand.
- Integrated multi-stack business model driving a self-reinforcing flywheel at the intersection of e-commerce, subscription, and re-commerce.
- Proven track record of extended reuse during asset life cycle and consistent cohort returns.
- Proprietary technology stack seamlessly facilitating end-to-end operational integration.
- Founder-led company supported by a professional management team and marquee shareholders.
Risks
- The company derives most of its revenues by renting furniture and appliances (along with other recurring subscription revenue) (97.90%, 98.20% and 98.19% of the company's revenue from operations for Fiscals 2026, 2025 and 2024,respectively). Consequently, any decline in the demand for renting such products may adversely affect its business, results of operations, financial condition and cash flows.
- If the company is unable to procure products from its vendors on commercially acceptable terms or if the company third-party manufacturers choose not to manufacture products for it or fails to maintain quality standards or if the company's margins are impacted by higher supply costs or raw material price increases or delay in supply of the products, its business and reputation may be adversely affected.
- The growth of the company's business is dependent on its ability to continue to grow the number of subscribers that utilize the company's rental platform and rental products, and provide high levels of customer experience to increase adoption of its products from existing subscribers. If the company is unable to retain its existing subscribers and attract new subscribers, the company's business, results of operations, financial condition and cash flows may be adversely affected.
- The company's historical performance may not be indicative of its future growth or financial results and if the company fails to manage its growth or implement the company's growth strategies, its business, results of operations, financial condition and cash flows may be adversely affected.
- The company's revenue is concentrated in key tier-1 and metropolitan markets in India. Adverse local developments could disproportionately impact its business, results of operations, financial condition and cash flows.
- The company operations involve the storage, refurbishment, and movement of assets through and within the warehouses. The company has experienced a fire at one of its warehouses in June 2026, and any incident such as fire, natural calamity or operational disruption at these locations could result in asset damage, temporary suspension of operations, increased costs, or delays in service delivery, which may adversely affect the company's business, results of operations, financial condition and cash flows.
- The Company, Promoter and certain Directors are involved in certain legal and regulatory proceedings. Any adverse decision in such proceedings may have an adverse effect on its business, financial condition, cash flows and results of operations.
- The company's Statutory Auditors have included certain observations on the audited financial statements, as well as certain statements in their auditor's report issued under the Companies (Auditor's Report) Order, 2020 for the years ended March 31, 2026, 2025 and 2024.
- Delays or defaults in payments by subscribers, or premature cancellation of contracts, may adversely affect the company's business, results of operations, financial condition and cash flows.
- The company's Registered Office and Corporate Office each are not located on land owned by it and the company has only membership rights. Similarly, its offline experience stores and warehouses are located on leasehold property. In the event the company lose or are unable to renew such leasehold or membership rights, its business, results of operations, financial condition and cash flows may be adversely affected.
- Failures in the company's technology platforms and resulting interruptions in the availability of its services could adversely affect the company's business and reputation.
- Cyber security breaches and attacks against the company's systems, and any potentially resulting breach or failures to otherwise protect confidential information, could adversely impact its business and reputation.
- Its may be unable to successfully expand and operates the company network of experience stores, and such expansion is subject to operational and regulatory risks, which may have an adverse impact on its business, results of operations, financial condition and cash flows.
- The company has in the past incurred certain non-compliances, and failed to file certain forms with RBI for certain allotments made by the Company, within the prescribed timelines and have compounded such non-compliances and delays under FEMA, 1999 and the rules made thereunder and paid the compounding fee. The company has also paid late submission fees for delays in filing of forms with RBI in respect of certain allotments made by the Company.
- The company has obtained and may continue to obtain financing for its business and the company's inability to obtain further financing or meet its obligations, including financial and other covenants under financing arrangements could adversely affect the company's business, results of operations, financial condition and cash flows.
- The company's leverage artificial intelligence and machine learning in critical areas of its operations and such technologies may subject the company to evolving risks.
- The growth of the company's business depends on the strength of its brand and any failures to protect and enhance the company's brand may adversely affect its business and reputation.
- Its operations are manpower intensive and if the company is affected by work stoppages or increased wage demands, and if the company is unable to engage current and new employees and contractors on commercially acceptable terms, its business and results of operations may be adversely affected.
- The company has experienced delays in payment of certain statutory dues including employee state insurance corporation contributions, provident fund contributions, professional tax, labour welfare fund and income tax payments in the past.
- If the company fails to protect or incur significant costs in defending its intellectual property rights, the company's results of operations, financial condition and cash flows may be adversely affected.
- The company's inability to accurately estimate supply-demand, manage returns and refurbishment timelines, and efficiently repair and redeploy products may lead to asset imbalances and adversely affect its business and results of operations.
- Certain assets previously sold to third-parties have not been transferred in the name of such third-parties as required under applicable law, which could adversely affect the company's business, financial condition and results of operations.
- The company's business depends on maintaining high occupancy rates. A decline in Occupancy Rates may materially reduce return on capital employed and operating cash flows.
- Certain of the company's corporate records and filings are not traceable or have certain discrepancies. Its cannot assure you that regulatory proceedings or actions will not be initiated against the company in the future and its will not be subject to any penalty imposed by the competent regulatory authority in this regard.
- Grants of stock options under the company's employee stock option plans may result in a charge to its statement of profit and loss and will, to that extent, reduce the company's profits.
- Its may be subject to product liability claims by subscribers due to defects in the company's products which could have an adverse impact on its business, results of operations, financial condition and cash flows.
- The company is dependent on third party transport service providers for timely delivery of products to its subscribers. Any failures by a third party transport service provider could result in delays, which may adversely affect the company's business and reputation.
- Dependence on third-party service providers by the company involves risks, including security incidents, service disruptions and operational failures that could compromise confidential information, disrupt critical business operations, and damage its reputation. Interruptions or delays of these services may have an adverse impact on the company's business, cash flows, financial condition and results of operations.
- Its may be subject to risks arising from misconduct by employees, contractual workers or service professionals that could adversely affect the company's business and reputation.
- The company may faces increased risks of delayed or defaulted subscriber payments due to low adoption of the auto-pay function among its subscriber base.
- The company has limited history operating its business at the company's current scale, scope and complexity in an evolving market and economic environment, which makes it difficult to evaluate the company's current business, plans for future operations and strategic initiatives, predict future results, and evaluate its future prospects, increasing the risk associated with your investment.
- As of March 31, 2026, March 31, 2025 and March 31, 2024, the company's asset insurance coverage as a percentage of total book value of property, plant and equipment was 53.92%, 45.92% and 72.38%, respectively. Its insurance coverage may not be adequate or the company may incur uninsured losses or losses in excess of its insurance coverage which may impact the company's business, results of operations, financial condition and cash flows.
- The wide variety of payment methods that the company accept subjects it to third-party payment processing-related risks. Further, the company relies on its arrangements with financial institutions and other third-parties for payment processing infrastructure. If such financial institutions or third-parties are unwilling or unable to provide these services to the company, its business could be adversely affected.
- If the company fails to anticipate and respond successfully to new and changing furniture or appliance trends and consumer preferences, its business, results of operations, financial condition and cash flows could be harmed.
- The company requires working capital for its continued operation and growth. The company's inability to meet its working capital requirements or a negative working capital position could adversely affect its liquidity and could have an adverse effect on the company's business, results of operations, financial condition and cash flows.
- The company's rental assets are subject to depreciation where its may be required to recognize impairment losses, which could adversely affect the company's business, results of operations, financial condition and cash flow.
- The company operations involve handling and transporting heavy items and dealing with electrical appliances, which may result in injuries to its personnel, injury or financial loss to subscribers due to defective products and/or expose the company to civil or criminal liabilities, any of which could adversely affect its business, results of operations, financial condition, and cash flows.
- The company's business requires it to obtain and renew certain licenses and permits from government, regulatory and statutory authorities and the failures to obtain or renew them in a timely manner may adversely affect the company's business, results of operations and financial condition.
- The company's business model and profitability are dependent on its estimates regarding the useful lives and residual values of the company's rental assets, and any reassessment of such estimates may adversely affect its business, results of operations, financial condition and cash flows.
- The company's business is subject to various laws and regulations which are constantly evolving. Deemed non- compliance with any of these laws and regulations, may lead to significant fines and penalties, and its business, reputation, financial condition, cash flows and results of operations may be materially and adversely impacted.
- An inability to compete effectively may adversely affect the company's business, results of operations, financial condition and cash flows.
- The company use open source software as part of its operations which could adversely affect the company's ability to offer its services and subject the company to possible litigation.
- The company's potential diversification into new lines of service or product offerings or geographies may expose it to operational, financial, cash flow and regulatory risks.
- The company's continued success is dependent on its Promoter, Key Management Personnel and Senior Management and skilled professionals. The company's inability to attract and retain key personnel or the loss of services of such personnel may have an adverse effect on its business, results of operations, financial condition and cash flows.
- The company is subject to evolving ESG, environmental and product quality regulations, including extended producer responsibility obligations under the E-Waste (Management) Rules, 2022 and furniture quality control requirements, which may increase compliance costs and expose the company to penalties, operational disruptions and reputational risks.
- The company engage contract labour for carrying out certain functions of its business operations. Any default on payments or non-compliance to them by the agencies could lead to disruption of the company's business operations.
- The company has entered into certain transactions with related parties in the past and may continue to do so in the future. These transactions or any future transactions with its related parties could potentially involve conflicts of interest.
- The company's contingent liabilities could adversely affect its financial condition if they materialise.
- If the company does not continue to innovate and develop its Rentomojo platform and operational capabilities, or the company platform developments does not perform or keep pace with technological developments, its may not remain competitive and the company's business and results of operations could suffer. Further, any inability to successfully launch new features or products could result in loss of subscribers and operating revenues.
- Failures in internal control systems could cause operational errors which may have an adverse effect on the company's reputation, results of operations, financial condition and cash flows.
- If the company inadvertently infringe on the intellectual property rights of others, its business, results of operations, financial condition and cash flows may be adversely affected.
- Certain appliances offered on the company platform including air conditioners and air purifiers are seasonal in nature, which could cause its revenues to fluctuate.
- The company has availed of an overdraft facility. While the company does not have any outstanding amount under this facility, future unsecured borrowings, if incurred, may be recalled by the lender at any time, and the Company may not have adequate funds to make timely payments or at all.
- The company may pursue strategic acquisitions for inorganic growth in the future. Its may not be able to integrate any future acquisitions or may be faced with operating difficulties due to such integration, which could adversely affect the company's business, results of operations, financial condition and cash flows.
- Certain sections of this Red Herring Prospectus disclose information from the Redseer Report which has been prepared exclusively for the Offer and commissioned and paid for by the company exclusively in connection with the Offer and any reliance on such information for making an investment decision in the Offer is subject to inherent risks.
- The company's Promoter and members of its Promoter Group will continue to hold an equity stake in the Company after the Offer, which could be considered substantial, and their interests may differ from those of the other shareholders.
- The company's Promoter, Directors, Key Managerial Personnel and Senior Management hold Equity Shares and/ or stock options in the Company and are therefore interested in its performance in addition to their remuneration and reimbursement of expenses.
- Certain non-GAAP financial measures relating to the company operations and financial performance have been included in this Red Herring Prospectus. These non-GAAP financial measures are not measures of operating performance or liquidity defined by Ind AS and may not be comparable.
- Its industry is subject to certain threats and challenges, which could adversely affect the company's business, results of operations, financial condition and cash flows.
- The company funding requirements and proposed deployment of the Net Proceeds of the Offer have not been appraised by a bank or a financial institution and if there are any delays or cost overruns, its business, cash flows, financial condition and results of operations may be adversely affected.
- The company's ability to access capital at attractive costs depends on its credit ratings. Any downgrade of credit ratings or a poor rating may restrict the company access to capital and thereby adversely affect its business, financial conditions, cash flows and results of operations.
- Any variation in the utilization of the Net Proceeds as disclosed in this Red Herring Prospectus shall be subject to certain compliance requirements, including prior approval of the shareholders of the Company.
- The company's ability to pay dividends in the future will depends upon its future earnings, financial condition, cash flows, working capital requirements and capital expenditures and the terms of the company's financing arrangements.
- Regulatory changes relating to energy-efficiency standards may adversely impact the usable life and resale potential of the company's products.
- The company has issued specified securities during the preceding 12 months at prices that may be lower than the Offer Price.
- The company will not receive any proceeds from the Offer for Sale.
- The determination of the Price Band is based on various factors and assumptions and the Offer Price, price to earnings ratio and market capitalisation to revenue multiple based on the Offer Price of the Company, may not be indicative of the market price of the Company on listing or thereafter.
- Some of the company's Directors are or were not directors of listed companies and hence lack adequate experience to address complexities associated with listed companies, which could have an adverse impact on its business, results of operations, financial condition and cash flows.
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The IPO opens on 09 Sept 2026 & closes on 11 Sept 2026.
Rentomojo Limited was originally incorporated in the name of Edunetwork Private Limited' as a Private limited company, dated April 16, 2012 with the RoC. Thereafter, the Company changed its name to Rentomojo Private Limited' dated October 8, 2025. Subsequently, in order to raise capital in the future and access the capital markets, the Company has converted from a Private limited company into a Public Limited Company and the name of the Company has changed to Rentomojo Limited' via fresh Certificate of Incorporation dated February 3, 2026 issued by the Central Processing Centre.
Rentomojo operates a technology-driven, full-stack direct-to-consumer (D2C) online rental and subscription platform for furniture and appliances in India. Prior to the emergence of organized rental platforms, consumers typically met their furniture and appliance requirements through outright purchase. Over the past decade, rental platforms have provided an alternative access-based option to consumers alongside traditional ownership.
The e-commerce stack comprises logistics, warehousing, labour, and service infrastructure that operate as a shared backbone across all subscriber touchpoints including delivery, installation, pickup, relocation, reverse logistics, repair visits, and replacement cycles. Instead of running these activities in siloed operational units, the Company operate them as an unified engine, with fixed costs spread across multiple stores. The fixed logistics and operations costs have been shared across multiple touchpoints because the same truck fleet and service workforce handle delivery, installation, pickups, reverse logistics, and refurbishments within a single route. Illustratively, a truck that delivers Products to new subscribers on the way out pick up returned items for refurbishment on the way back, spreading fixed costs.
In 2016, the Company launched Rentomojo android application. In 2018, it commenced business operations in Ghaziabad, UP, launched Rentomojo iOS application in 2019. The Company commenced rental operations of water purifiers in 2024.
In FY 2025, the Company expanded the portfolio and launched private-label refrigerators and washing machines manufactured in collaboration with Dixon Technologies (India) Limited as well as water purifiers.
Company has filed a Draft Prospectus with the SEBI& is planning to came up with the IPO by raising funds aggregating to Rs 150 Crore through fresh issue and by issuing 28,399,567 Equity Shares having face value of Re 1 each through Offer for Sale.
Rentomojo Ltd IPO will close on 11 Sept 2026.
- Consistently profitable D2C player since Fiscal 2023, driven by predictable recurring revenues, acyclical performance and high return on capital employed.
- Leading furniture and appliance rental platform, where scale enables higher subscriber engagements - creating organic demand.
- Integrated multi-stack business model driving a self-reinforcing flywheel at the intersection of e-commerce, subscription, and re-commerce.
- Proven track record of extended reuse during asset life cycle and consistent cohort returns.
- Proprietary technology stack seamlessly facilitating end-to-end operational integration.
- Founder-led company supported by a professional management team and marquee shareholders.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Geetansh Bamania | 14897732 | 14.69 | 14048557 | 13.37 |
| 2 | Gaurav Bamania | 2843320 | 2.8 | 2443320 | 2.32 |
| 3 | Meera Bamania | 73309 | 0.07 | 73309 | 0.07 |
| 4 | Jagdish Bamania | 51316 | 0.05 | 51316 | 0.05 |
| 5 | Tulika Shukla | 23459 | 0.02 | 23459 | 0.02 |
| 6 | MVP Family Trust | 3915548 | 3.86 | 3915548 | 3.73 |
- The company derives most of its revenues by renting furniture and appliances (along with other recurring subscription revenue) (97.90%, 98.20% and 98.19% of the company's revenue from operations for Fiscals 2026, 2025 and 2024,respectively). Consequently, any decline in the demand for renting such products may adversely affect its business, results of operations, financial condition and cash flows.
- If the company is unable to procure products from its vendors on commercially acceptable terms or if the company third-party manufacturers choose not to manufacture products for it or fails to maintain quality standards or if the company's margins are impacted by higher supply costs or raw material price increases or delay in supply of the products, its business and reputation may be adversely affected.
- The growth of the company's business is dependent on its ability to continue to grow the number of subscribers that utilize the company's rental platform and rental products, and provide high levels of customer experience to increase adoption of its products from existing subscribers. If the company is unable to retain its existing subscribers and attract new subscribers, the company's business, results of operations, financial condition and cash flows may be adversely affected.
- The company's historical performance may not be indicative of its future growth or financial results and if the company fails to manage its growth or implement the company's growth strategies, its business, results of operations, financial condition and cash flows may be adversely affected.
- The company's revenue is concentrated in key tier-1 and metropolitan markets in India. Adverse local developments could disproportionately impact its business, results of operations, financial condition and cash flows.
- The company operations involve the storage, refurbishment, and movement of assets through and within the warehouses. The company has experienced a fire at one of its warehouses in June 2026, and any incident such as fire, natural calamity or operational disruption at these locations could result in asset damage, temporary suspension of operations, increased costs, or delays in service delivery, which may adversely affect the company's business, results of operations, financial condition and cash flows.
- The Company, Promoter and certain Directors are involved in certain legal and regulatory proceedings. Any adverse decision in such proceedings may have an adverse effect on its business, financial condition, cash flows and results of operations.
- The company's Statutory Auditors have included certain observations on the audited financial statements, as well as certain statements in their auditor's report issued under the Companies (Auditor's Report) Order, 2020 for the years ended March 31, 2026, 2025 and 2024.
- Delays or defaults in payments by subscribers, or premature cancellation of contracts, may adversely affect the company's business, results of operations, financial condition and cash flows.
- The company's Registered Office and Corporate Office each are not located on land owned by it and the company has only membership rights. Similarly, its offline experience stores and warehouses are located on leasehold property. In the event the company lose or are unable to renew such leasehold or membership rights, its business, results of operations, financial condition and cash flows may be adversely affected.
- Failures in the company's technology platforms and resulting interruptions in the availability of its services could adversely affect the company's business and reputation.
- Cyber security breaches and attacks against the company's systems, and any potentially resulting breach or failures to otherwise protect confidential information, could adversely impact its business and reputation.
- Its may be unable to successfully expand and operates the company network of experience stores, and such expansion is subject to operational and regulatory risks, which may have an adverse impact on its business, results of operations, financial condition and cash flows.
- The company has in the past incurred certain non-compliances, and failed to file certain forms with RBI for certain allotments made by the Company, within the prescribed timelines and have compounded such non-compliances and delays under FEMA, 1999 and the rules made thereunder and paid the compounding fee. The company has also paid late submission fees for delays in filing of forms with RBI in respect of certain allotments made by the Company.
- The company has obtained and may continue to obtain financing for its business and the company's inability to obtain further financing or meet its obligations, including financial and other covenants under financing arrangements could adversely affect the company's business, results of operations, financial condition and cash flows.
- The company's leverage artificial intelligence and machine learning in critical areas of its operations and such technologies may subject the company to evolving risks.
- The growth of the company's business depends on the strength of its brand and any failures to protect and enhance the company's brand may adversely affect its business and reputation.
- Its operations are manpower intensive and if the company is affected by work stoppages or increased wage demands, and if the company is unable to engage current and new employees and contractors on commercially acceptable terms, its business and results of operations may be adversely affected.
- The company has experienced delays in payment of certain statutory dues including employee state insurance corporation contributions, provident fund contributions, professional tax, labour welfare fund and income tax payments in the past.
- If the company fails to protect or incur significant costs in defending its intellectual property rights, the company's results of operations, financial condition and cash flows may be adversely affected.
- The company's inability to accurately estimate supply-demand, manage returns and refurbishment timelines, and efficiently repair and redeploy products may lead to asset imbalances and adversely affect its business and results of operations.
- Certain assets previously sold to third-parties have not been transferred in the name of such third-parties as required under applicable law, which could adversely affect the company's business, financial condition and results of operations.
- The company's business depends on maintaining high occupancy rates. A decline in Occupancy Rates may materially reduce return on capital employed and operating cash flows.
- Certain of the company's corporate records and filings are not traceable or have certain discrepancies. Its cannot assure you that regulatory proceedings or actions will not be initiated against the company in the future and its will not be subject to any penalty imposed by the competent regulatory authority in this regard.
- Grants of stock options under the company's employee stock option plans may result in a charge to its statement of profit and loss and will, to that extent, reduce the company's profits.
- Its may be subject to product liability claims by subscribers due to defects in the company's products which could have an adverse impact on its business, results of operations, financial condition and cash flows.
- The company is dependent on third party transport service providers for timely delivery of products to its subscribers. Any failures by a third party transport service provider could result in delays, which may adversely affect the company's business and reputation.
- Dependence on third-party service providers by the company involves risks, including security incidents, service disruptions and operational failures that could compromise confidential information, disrupt critical business operations, and damage its reputation. Interruptions or delays of these services may have an adverse impact on the company's business, cash flows, financial condition and results of operations.
- Its may be subject to risks arising from misconduct by employees, contractual workers or service professionals that could adversely affect the company's business and reputation.
- The company may faces increased risks of delayed or defaulted subscriber payments due to low adoption of the auto-pay function among its subscriber base.
- The company has limited history operating its business at the company's current scale, scope and complexity in an evolving market and economic environment, which makes it difficult to evaluate the company's current business, plans for future operations and strategic initiatives, predict future results, and evaluate its future prospects, increasing the risk associated with your investment.
- As of March 31, 2026, March 31, 2025 and March 31, 2024, the company's asset insurance coverage as a percentage of total book value of property, plant and equipment was 53.92%, 45.92% and 72.38%, respectively. Its insurance coverage may not be adequate or the company may incur uninsured losses or losses in excess of its insurance coverage which may impact the company's business, results of operations, financial condition and cash flows.
- The wide variety of payment methods that the company accept subjects it to third-party payment processing-related risks. Further, the company relies on its arrangements with financial institutions and other third-parties for payment processing infrastructure. If such financial institutions or third-parties are unwilling or unable to provide these services to the company, its business could be adversely affected.
- If the company fails to anticipate and respond successfully to new and changing furniture or appliance trends and consumer preferences, its business, results of operations, financial condition and cash flows could be harmed.
- The company requires working capital for its continued operation and growth. The company's inability to meet its working capital requirements or a negative working capital position could adversely affect its liquidity and could have an adverse effect on the company's business, results of operations, financial condition and cash flows.
- The company's rental assets are subject to depreciation where its may be required to recognize impairment losses, which could adversely affect the company's business, results of operations, financial condition and cash flow.
- The company operations involve handling and transporting heavy items and dealing with electrical appliances, which may result in injuries to its personnel, injury or financial loss to subscribers due to defective products and/or expose the company to civil or criminal liabilities, any of which could adversely affect its business, results of operations, financial condition, and cash flows.
- The company's business requires it to obtain and renew certain licenses and permits from government, regulatory and statutory authorities and the failures to obtain or renew them in a timely manner may adversely affect the company's business, results of operations and financial condition.
- The company's business model and profitability are dependent on its estimates regarding the useful lives and residual values of the company's rental assets, and any reassessment of such estimates may adversely affect its business, results of operations, financial condition and cash flows.
- The company's business is subject to various laws and regulations which are constantly evolving. Deemed non- compliance with any of these laws and regulations, may lead to significant fines and penalties, and its business, reputation, financial condition, cash flows and results of operations may be materially and adversely impacted.
- An inability to compete effectively may adversely affect the company's business, results of operations, financial condition and cash flows.
- The company use open source software as part of its operations which could adversely affect the company's ability to offer its services and subject the company to possible litigation.
- The company's potential diversification into new lines of service or product offerings or geographies may expose it to operational, financial, cash flow and regulatory risks.
- The company's continued success is dependent on its Promoter, Key Management Personnel and Senior Management and skilled professionals. The company's inability to attract and retain key personnel or the loss of services of such personnel may have an adverse effect on its business, results of operations, financial condition and cash flows.
- The company is subject to evolving ESG, environmental and product quality regulations, including extended producer responsibility obligations under the E-Waste (Management) Rules, 2022 and furniture quality control requirements, which may increase compliance costs and expose the company to penalties, operational disruptions and reputational risks.
- The company engage contract labour for carrying out certain functions of its business operations. Any default on payments or non-compliance to them by the agencies could lead to disruption of the company's business operations.
- The company has entered into certain transactions with related parties in the past and may continue to do so in the future. These transactions or any future transactions with its related parties could potentially involve conflicts of interest.
- The company's contingent liabilities could adversely affect its financial condition if they materialise.
- If the company does not continue to innovate and develop its Rentomojo platform and operational capabilities, or the company platform developments does not perform or keep pace with technological developments, its may not remain competitive and the company's business and results of operations could suffer. Further, any inability to successfully launch new features or products could result in loss of subscribers and operating revenues.
- Failures in internal control systems could cause operational errors which may have an adverse effect on the company's reputation, results of operations, financial condition and cash flows.
- If the company inadvertently infringe on the intellectual property rights of others, its business, results of operations, financial condition and cash flows may be adversely affected.
- Certain appliances offered on the company platform including air conditioners and air purifiers are seasonal in nature, which could cause its revenues to fluctuate.
- The company has availed of an overdraft facility. While the company does not have any outstanding amount under this facility, future unsecured borrowings, if incurred, may be recalled by the lender at any time, and the Company may not have adequate funds to make timely payments or at all.
- The company may pursue strategic acquisitions for inorganic growth in the future. Its may not be able to integrate any future acquisitions or may be faced with operating difficulties due to such integration, which could adversely affect the company's business, results of operations, financial condition and cash flows.
- Certain sections of this Red Herring Prospectus disclose information from the Redseer Report which has been prepared exclusively for the Offer and commissioned and paid for by the company exclusively in connection with the Offer and any reliance on such information for making an investment decision in the Offer is subject to inherent risks.
- The company's Promoter and members of its Promoter Group will continue to hold an equity stake in the Company after the Offer, which could be considered substantial, and their interests may differ from those of the other shareholders.
- The company's Promoter, Directors, Key Managerial Personnel and Senior Management hold Equity Shares and/ or stock options in the Company and are therefore interested in its performance in addition to their remuneration and reimbursement of expenses.
- Certain non-GAAP financial measures relating to the company operations and financial performance have been included in this Red Herring Prospectus. These non-GAAP financial measures are not measures of operating performance or liquidity defined by Ind AS and may not be comparable.
- Its industry is subject to certain threats and challenges, which could adversely affect the company's business, results of operations, financial condition and cash flows.
- The company funding requirements and proposed deployment of the Net Proceeds of the Offer have not been appraised by a bank or a financial institution and if there are any delays or cost overruns, its business, cash flows, financial condition and results of operations may be adversely affected.
- The company's ability to access capital at attractive costs depends on its credit ratings. Any downgrade of credit ratings or a poor rating may restrict the company access to capital and thereby adversely affect its business, financial conditions, cash flows and results of operations.
- Any variation in the utilization of the Net Proceeds as disclosed in this Red Herring Prospectus shall be subject to certain compliance requirements, including prior approval of the shareholders of the Company.
- The company's ability to pay dividends in the future will depends upon its future earnings, financial condition, cash flows, working capital requirements and capital expenditures and the terms of the company's financing arrangements.
- Regulatory changes relating to energy-efficiency standards may adversely impact the usable life and resale potential of the company's products.
- The company has issued specified securities during the preceding 12 months at prices that may be lower than the Offer Price.
- The company will not receive any proceeds from the Offer for Sale.
- The determination of the Price Band is based on various factors and assumptions and the Offer Price, price to earnings ratio and market capitalisation to revenue multiple based on the Offer Price of the Company, may not be indicative of the market price of the Company on listing or thereafter.
- Some of the company's Directors are or were not directors of listed companies and hence lack adequate experience to address complexities associated with listed companies, which could have an adverse impact on its business, results of operations, financial condition and cash flows.
The Issue type of Rentomojo Ltd is Book Building.
The minimum application for shares of Rentomojo Ltd is 37.
The total shares issue of Rentomojo Ltd is 31078400.
Initial public offer of up to 31,078,400 equity shares of face value of Rs. 1 each ("Equity Shares") of Rentomojo Limited (formerly known as Rentomojo Private Limited and Edunetwork Private Limited) (the "Company" or the "Issuer") for cash at a price of Rs. 404 equity share (including a share premium of Rs. 403 per equity share) (the "Offer Price") aggregating up to Rs. 1255.57 Crores comprising a fresh issue of up to 3,712,871 equity shares aggregating up to Rs. 150.00 crores by the company ("Fresh Issue") and an offer for sale of up to 27,365,529 equity shares aggregating up to Rs. 1105.57 Crores ("Offered Shares") by the selling shareholders, comprising up to 849,175 equity shares aggregating up to Rs. 34.31 Crores by Geetansh Bamania ("Promoter Selling Shareholder"), up to 7,846,951 equity shares aggregating up to Rs. 317.02 Crores by Accel India IV (Mauritius) Limited, up to 2,882,794 equity shares aggregating up to Rs. 116.46 Crores by Edelweiss Discovery Fund - Series I, up to 2,803,431 equity shares aggregating up to Rs. 113.26 Crores by IDG Ventures India Fund III LLC, upto 2,713,418 equity shares aggregating up to Rs. 109.62 by Valuequest S.C.A.L.E. Fund, up to 2,398,550 equity shares aggregating up to Rs. 96.9 Crores by Madison India Opportunities V VCC, up to 2,002,019 equity shares aggregating up to Rs. 80.88 Crores by Chiratae Trust Represented by its Trustee Vistra Ltcl (India) Limited Chiratae Growth Fund - I represented by its Trustee Vistra Ltcl (India) Limited and acting through its investment manager, Naigama Investment Manager LLP, up to 1,512,800 equity shares aggregating up to Rs. 61.12 Crores on by GMO Payment Gateway INC, up to 842,174 equity shares aggregating up to Rs. 34.02 Crores by GMO GFF Limited partnership, up to 753,647 equity shares aggregating up to Rs. 30.45 Crores by MSIVC 2018v Venture Capital Investment Limited Partnership, up to 719,315 equity shares aggregating up to Rs. 29.06 Crores by Pratithi Investment Trust, acting through its Trustee S. Gopalakrishnan, up to 307,000 equity shares aggregating up to Rs. 12.4 Crores by Rajeev Chitrabhanu HUF, and up to 76,260 equity shares aggregating up to Rs. 3.08 Crores by Vcats Management Services Trust - ii ("Investor Selling Shareholders"), up to 755,405 equity shares aggregating up to Rs. 30.52 Crores by Renaud Laplanche, up to 400,000 equity shares aggregating up to Rs. 16.16 Crores by Gaurav Bamania, up to 254,130 equity shares aggregating up to Rs. 10.27 Crores by Gautam Dalmia, up to 148,460 equity shares aggregating up to Rs. 6 Crores by Nitish Mittersain and up to 100,000 equity shares aggregating up to Rs. 4.04 Crores by Subodh Shinkar (collectively the "Individual Selling Shareholders" and together with the promoter selling shareholder and investor selling shareholders, the "Selling Shareholders" and such offer for sale, the "Offer For Sale", and together with the fresh issue, the "Offer").
The company, in consultation with the brlms, may consider a pre-ipo placement aggregating up to Rs.30.00 crores, prior to filing of the pre-ipo placement, if undertaken, will be at a price to be decided by the company, in consultation with the brlms. If the pre-ipo placement is completed, the amount raised pursuant to the pre-ipo placement will be reduced from the fresh issue, subject to compliance with Rule 19(2)(b) of the scrr. The pre-ipo placement, if undertaken, shall not exceed 20% of the size of the fresh issue. Prior to the completion of the offer, the company shall appropriately intimate the subscribers to the pre-ipo placement, prior to allotment pursuant to the pre-ipo placement, that there is no guarantee that the company may proceed with the offer or the offer may be successful and will result into listing of the equity shares on the stock exchanges. Further, relevant disclosures in relation to such intimation to the subscribers to the pre-ipo placement (if undertaken).
The offer may include a reservation of up to 49,504 equity shares of face value of Rs. 1 each, aggregating up to Rs. 2 Crores (constituting up to [*]% of the post-offer paid-up equity share capital of the company), for subscription by eligible employees ("Employee Reservation Portion"). The company, in consultation with the brlms may offer a discount of Rs. 20 per equity share of face value of Rs. 1 each, to eligible employees bidding in the employee reservation portion ("Employee Discount"), subject to necessary approvals as may be required. The offer less the employee reservation portion is hereinafter referred to as the "Net Offer". The offer and the net offer shall constitute [*] % and [*] % of the post-offer paid-up equity share capital of the company, respectively.
Price Band: Rs. 404 per equity share of face value of Rs. 1 each.
The floor price 404 times the face value of the equity shares, respectively.
Bids can be made for a minimum of 37 equity shares of face value of Rs. 1 each and in multiples of 37 equity shares of face value of Rs. 1 each thereafter.
Discount of Rs. 20 per equity share of face value of Rs. 1 is being offered to eligible employees bidding in the employee reservation portion.