Rentomojo share price slipped over 1% on Friday, 18 September, in its second trading session after the online furniture and appliance rental platform made its stock market debut on Thursday. Despite the decline, the stock continued to trade around 44% above its IPO issue price of ₹404.
Rentomojo share price today opened at ₹566.95 apiece on the BSE, the stock touched an intraday low of ₹524.95 per share, and an intraday high of ₹581.45 apiece.
Rentomojo shares had delivered a strong debut, ending more than 32% above the IPO issue price of ₹404 on the first day of trading.
On the BSE, the stock opened at ₹480, marking an 18.81% premium over the issue price, before ending the session at ₹532.95, up 31.91%.
At the NSE, Rentomojo shares debuted at ₹482.45, reflecting a 19.41% premium to the issue price. The stock eventually closed at ₹534.25, registering a gain of 32.24%.
Following the strong listing, Rentomojo’s market capitalisation stood at ₹5,548.80 crore.
Trading activity was also strong, with 47.51 lakh shares changing hands on the BSE and 458.89 lakh shares traded on the NSE during Thursday’s session.
The ₹1,256-crore initial public offering (IPO) of Rentomojo was subscribed 72.88 times on the final day of the issue. The company had set the IPO price band at ₹384–404 per equity share.
Rentomojo share price – What should investors do?
Dr. Ravi Singh, Chief Research Officer at Master Capital Services Ltd., said investors should monitor Rentomojo’s ability to sustain rental revenue, deliver earnings growth and maintain profitability in the near term.
According to Singh, the company may be relevant for investors who understand and are comfortable with its asset-heavy rental business model.
Rentomojo IPO details
The IPO comprises a fresh issue of equity shares worth up to ₹150 crore and an Offer for Sale (OFS) of 2.73 crore shares, valued at up to ₹1,106 crore at the upper end of the price band. At an issue price of ₹404 per share, the total IPO size stands at ₹1,256 crore.
The OFS includes shares offered by several existing shareholders, including Accel India IV (Mauritius) Ltd, Edelweiss Discovery Fund – Series I, IDG Ventures India Fund III LLC, ValueQuest S.C.A.L.E. Fund, Madison India Opportunities V VCC, Chiratae Trust, TM Naigama Investment Manager LLP, GMO Payment Gateway Inc, Geetansh Bamania, GMO GFF Ltd Partnership and Renaud Laplanche.
Proceeds from the fresh issue will be used primarily towards debt repayment, lease rentals or licence fees for the company’s warehouses and experience stores, along with general corporate purposes.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
