Rentomojo shares opened at Rs 482.45 apiece on the NSE, marking a premium of greater than 19% over the IPO value of Rs 404 apiece. In lower than an hour of its debut, the inventory rallied sharply by over 9% to commerce at Rs 526.70 apiece, including greater than Rs 460 crore to the corporate’s market capitalisation and taking it to just about Rs 5,484 crore.
Additionally learn | Rentomojo shares record at 19% premium over IPO value
About Rentomojo IPO
The robust market debut comes after Rentomojo’s Rs 1,255.57 crore IPO noticed robust investor curiosity throughout its three days of public bidding, being subscribed 73 instances its provide dimension between September 9 and September 11.
Certified institutional patrons (QIBs) led the demand, subscribing their reserved portion over 177 instances. The parts saved for retail traders and non-institutional traders (NII) in the meantime, have been booked round 16 instances and 68 instances, respectively.
The maiden public challenge of the furnishings and home equipment renting platform comprised a contemporary challenge of shares price Rs 150 crore, and a suggestion on the market of shares price round Rs 1,106 crore by present shareholders. A day earlier than the IPO opened for public subscription, the corporate raised Rs 376 crore from 41 anchor traders.
Additionally learn | Rentomojo to lift Rs 1,256 crore through IPO; wealthy valuation a priority
How will Rentomojo use its IPO proceeds?
Rentomojo goals to make use of the contemporary challenge proceeds from the IPO for a number of key company functions. A portion of the funds will go in the direction of the compensation or prepayment, both in full or partially, of sure excellent borrowings, together with the accrued curiosity on these loans.
The corporate additionally plans to make use of a part of the IPO proceeds to pay lease leases and licence charges for its warehouses and expertise shops. The remaining IPO proceeds will likely be utilised for normal company functions.
Learn extra:NSE IPO Tracker: Catch all of the highlights right here
Do you have to purchase, promote or maintain Rentomojo shares?
Sunny Agrawal, Deputy Vice President of Basic Analysis at SBI Securities, believes traders ought to proceed to carry Rentomojo shares from a medium- to long-term perspective, given its place as an organised furnishings and equipment rental platform in India, supported by a recurring subscription mannequin and a rising subscriber base.
“The corporate has delivered fabulous development over the last two years, and we consider going ahead… Rentomojo is a play on city mobility,” he added.
Rentomojo’s 19% itemizing pop has already priced in a lot of the near-term optimism, and at round 41x FY26 P/E, the valuation cushion stays skinny, cautioned Shivani Nyati, Head of Wealth at Swastika Investmart. Debt discount from IPO proceeds is a optimistic structural driver, however till profitability and asset-utilization metrics present sustained enchancment, the inventory is healthier suited to a wait-and-watch strategy quite than contemporary accumulation at present ranges, in response to the analyst, who prompt a cease loss at Rs 430 apiece, under itemizing value, to guard in opposition to the reversal of itemizing day features.
Disclaimer: This text has been written by Debaroti Adhikary, who just isn’t a SEBI-registered Analysis Analyst or an Funding Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as outlined beneath Part 2(77) of the Corporations Act, 2013) don’t maintain any monetary curiosity within the firms talked about on this article as of the date of publication. The views/suggestions talked about on this article, wherever relevant, are these of the respective SEBI-registered Analysis Analyst/brokerage and have been reproduced/reported with due attribution. They shouldn’t be construed because the views or suggestions of The Financial Occasions Digital or the journalist. Readers are suggested to think about the unique analysis report and make their funding selections based mostly on their very own evaluation. Brokerage disclaimers right here.
