Rentomojo’s initial public offering (IPO), which opens for subscription on Tuesday, September 9, 2026, could help Nazara Technologies founder Nitish Mittersain realise a gain of around 152 times his disclosed acquisition cost on the portion of his shares being sold in the issue.
The furniture and appliance rental startup is looking to raise Rs 1,255.57 crore through its maiden public offering. The IPO comprises a fresh issue of 37.15 lakh shares aggregating to Rs 150 crore and an offer for sale (OFS) of up to 2.74 crore shares worth Rs 1,105.57 crore.
The company has fixed a price band of Rs 384-404 per share, according to its red herring prospectus (RHP).
Mittersain, one of the individual shareholders participating in the OFS, holds 226,920 shares in Rentomojo, according to the offer documents. His disclosed weighted average acquisition cost is Rs 2.65 per share, with the acquisition-cost figures adjusted for the company’s subsequent share split.
Of his total holding, Mittersain is selling 148,460 shares through the IPO.
At the upper end of the IPO price band of Rs 404 per share, the shares being sold would be worth approximately Rs 6 crore. Based on the disclosed weighted average acquisition cost of Rs 2.65 per share, the proportionate acquisition cost of these 148,460 shares works out to around Rs 3.93 lakh.
This values the shares being sold at approximately 152.45 times their disclosed weighted average acquisition cost.
The implied gain on the portion of shares being sold is approximately Rs 5.96 crore at the upper end of the IPO price band, before taxes, transaction costs and other expenses.
The Rs 3.93 lakh figure represents the proportionate acquisition cost calculated using the weighted average acquisition cost disclosed in the RHP. It should not be construed as Mittersain’s original investment amount in Rentomojo.
Mittersain is not selling his entire stake in the IPO. After the sale of 148,460 shares, he will retain 78,460 shares.
At Rs 404 per share, his remaining holding would be worth approximately Rs 3.17 crore, assuming the stock trades at the IPO’s upper price band after listing.
That said, the actual return realised from the shares sold in the IPO may be higher or lower from these estimates depending on Rentomojo’s market price after listing. The company’s shares are tentatively scheduled to begin trading on the exchanges on September 17.
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Rentomojo said in its RHP that it will not receive any proceeds from the OFS. The selling shareholders will receive their respective portions of the offer proceeds from the shares sold by them, after deducting their proportion of offer-related expenses and relevant taxes, as applicable.
The company proposes to use the net proceeds from the fresh issue towards repayment or prepayment, in full or in part, of certain outstanding borrowings and accrued interest.
The proceeds will also be used towards payment of lease rentals or licence fees for its warehouses and experience stores, as well as general corporate purposes.
Rentomojo operates a technology-driven, full-stack direct-to-consumer (D2C) online rental and subscription platform for furniture and appliances in India. According to the company’s offer documents, Rentomojo was the largest online rental and subscription platform for home furniture and appliances based on live subscribers as of March 31, 2025 and September 30, 2025, and subscription revenue during fiscal 2025, among leading home furniture and appliance rental platforms in India, citing the Redseer Report. As of March 31, 2026, the company had 253,825 live subscribers across 29 cities in India.
