Rentomojo deployed 63.7% of fresh IPO proceeds by September

Rentomojo Limited deployed Rs 90 crore, or 63.7%, of Rs 141.372 crore in net fresh-issue proceeds by 30 September 2026, completing the Rs 70 crore borrowing-repayment allocation in the quarter it listed. Rs 51.372 crore remained, mainly for warehouse and experience-store lease rentals, licence fees and general corporate purposes.

How much of Rentomojo's fresh IPO money had been used?

Rentomojo had used Rs 90 crore of its Rs 141.372 crore net fresh-issue proceeds by 30 September 2026, leaving Rs 51.372 crore unutilised. The utilisation disclosure covers the quarter ended 30 September 2026, after the company's equity shares listed on 17 September 2026.

The 63.7% deployment rate applies to net proceeds rather than the Rs 1,255.6 crore total issue size. The initial public offering included a Rs 150 crore fresh issue and a Rs 1,105.6 crore offer for sale, while the use-of-proceeds table covers the capital available to Rentomojo from the net fresh issue.

Gross fresh-issue proceeds of Rs 150 crore exceeded the Rs 141.372 crore net-proceeds amount by Rs 8.628 crore. Rentomojo reported that the prospectus allocations and the net proceeds disclosed in the Monitoring Agency Report both totalled Rs 141.372 crore.

Where did Rentomojo deploy Rs 90 crore of fresh proceeds?

Rentomojo deployed Rs 70 crore for repayment or prepayment of certain outstanding borrowings and accrued interest, Rs 8.098 crore for warehouse and experience-store lease rentals and licence fees, and Rs 11.902 crore for general corporate purposes. Borrowing repayment represented 77.8% of the Rs 90 crore utilised by 30 September 2026.

The borrowing allocation was the only object fully deployed in the listing quarter. Rentomojo earmarked Rs 70 crore for this purpose, used Rs 70 crore and reported no unutilised balance against the allocation as of 30 September 2026.

Rentomojo used Rs 8.098 crore of the Rs 42.5 crore allocated for lease rentals and licence fees at warehouses and experience stores. This represented 19.1% of that object, leaving Rs 34.402 crore, which was the largest remaining balance among the three stated uses.

General corporate purposes received Rs 11.902 crore, or 41.2% of the Rs 28.872 crore allocation. Although this was less than the Rs 70 crore directed to debt repayment, its allocation was used at a faster percentage rate than the warehouse and experience-store category.

Did Rentomojo fully use the IPO allocation for debt repayment?

Yes, Rentomojo fully used the Rs 70 crore earmarked for repayment or prepayment of certain outstanding borrowings and accrued interest by 30 September 2026. The presentation describes this as 100.0% utilisation within the quarter of listing.

The complete use of the debt allocation contrasts with partial deployment of the other two objects. Of the combined Rs 71.372 crore allocated to warehouse and experience-store lease costs and general corporate purposes, Rentomojo had spent Rs 20 crore, or 28.0%, leaving Rs 51.372 crore.

Management reported net debt of Rs 130.6 crore as of September 2026 after the initial public offering. That balance-sheet measure is separate from the Rs 70 crore fresh-proceeds allocation applied to borrowing repayment, and the presentation does not identify the facilities repaid or quantify interest savings from that use.

Rentomojo also disclosed a weighted-average cost of debt of 9.27% in Q2 FY27 and a rate of 8.65% on its latest debt raised. The source does not state whether either rate applied to the borrowings repaid with the Rs 70 crore allocation.

What remained to be spent from Rentomojo's IPO proceeds?

Rentomojo had Rs 51.372 crore of net fresh proceeds left to spend at 30 September 2026: Rs 34.402 crore for warehouse and experience-store lease rentals and licence fees, and Rs 16.970 crore for general corporate purposes. No borrowing-repayment allocation remained unutilised.

The warehouse and experience-store category accounted for 67.0% of the Rs 51.372 crore residual balance. General corporate purposes represented the remaining 33.0%, while the presentation did not assign either balance to specific sites, assets or future dates.

Management said it was focused on scaling Rentomojo through subscriber growth, better asset utilisation and technology. In Q2 FY27, average occupancy was 85.9%, live subscribers increased 42.5% year on year and live items increased 44.0% year on year, but the source does not link the remaining Rs 34.402 crore to named warehouse or store openings.

How did the listing-quarter deployment compare with Rentomojo's operating performance?

Rentomojo deployed 63.7% of net fresh proceeds by 30 September 2026 while revenue from operations reached Rs 142.1 crore in Q2 FY27. Revenue was 52.8% higher year on year and 12.5% higher quarter on quarter, supported by growth in live items and items ordered.

Items ordered rose 45.0% year on year to 381,347 in Q2 FY27. The company reported normalised earnings before interest, tax, depreciation and amortisation of Rs 58.8 crore, up 52.7% year on year and 12.6% quarter on quarter.

Normalised return on equity was 24.6% in Q2 FY27, down 396 basis points year on year. Rentomojo attributed the decline to the larger equity base following the Rs 141.4 crore net fresh issue and said the measure would have been 30.0% without giving effect to those proceeds.

Rentomojo listed at Rs 482.45 on 17 September 2026, 19.4% above the Rs 404 issue price. As of 9 November 2026, its closing share price was Rs 591.45, which the presentation reported as 46.4% above the issue price.

Conclusion

Rentomojo's allocation data show a clear sequencing of fresh capital use: the Rs 70 crore debt-repayment object was completed first, while Rs 20 crore was deployed across operational lease costs and corporate purposes. The result was Rs 51.372 crore still available at 30 September 2026, concentrated in the warehouse and experience-store allocation.

The next point to watch is the use of the Rs 34.402 crore remaining for warehouse and experience-store costs as management pursues subscriber growth, asset utilisation and technology. Future disclosures may also show whether occupancy, which stood at 85.9% in Q2 FY27, changes alongside deployment of the remaining proceeds.