Rentomojo Receives SEBI Approval for Upcoming IPO, Aims to Raise Funds

Rentomojo Receives SEBI Observations for Proposed IPO

Rentomojo, a Bengaluru-based furniture and appliance rental startup, has received observations from market regulator SEBI for its proposed initial public offering (IPO), paving the way for the company to launch its public issue on Dalal Street. The issue is largely dominated by an offer for sale (OFS) by existing shareholders, with a smaller primary component aimed at raising fresh capital for expansion.

The IPO comprises a fresh issue of equity shares aggregating up to ₹150 crore and an offer for sale of up to 28,399,567 equity shares with a face value of ₹1 each. Motilal Oswal Investment Advisors, Axis Capital, and IIFL Capital Services (formerly IIFL Securities) are the book-running lead managers to the issue.

The company proposes to utilise the net proceeds from the fresh issue towards the repayment or prepayment, in full or in part, of certain outstanding borrowings along with accrued interest, payment of lease rentals or licence fees for its warehouses and experience stores, and general corporate purposes. The equity shares offered through the Red Herring Prospectus are proposed to be listed on both the BSE and the NSE.