Rentomojo Ltd Forensic Report - SOIC x StockScans Report

as of Sep 2026

Rentomojo comes to its IPO with growing customer operations in consumer rentals, but its record shows legal challenges and accounting choices that lifted reported profits. A former director has petitioned the National Company Law Tribunal (the court that resolves corporate disputes) to halt the public offering and remove the founder. Meanwhile, the six-month net profit of ₹61.38 crore through September 30, 2025 was boosted by ₹32.84 crore of accounting tax credits and extended equipment lifespans, while short-term debt and vendor dues exceeded short-term assets by ₹83.17 crore.

Key findings

  1. Former director petitions court to halt IPO and unseat the promoter Major - On March 25, 2026, former director Ajay Nain filed a petition before the Bengaluru bench of the National Company Law Tribunal, the specialized court for company disputes. He alleges that the company gave inaccurate information when he sold 2,223 shares (an alleged 9.41% stake) to the employee trust in August 2023. The petition asks the court to halt the IPO, cancel the share sale, and remove promoter Geetansh Bamania from management. The company filed caveats in court on March 26 and 27, 2026 to ensure it receives notice before any order is made.
  2. Accounting changes and tax credits boosted reported net profits Major - For the six months ended September 30, 2025, the company recorded a deferred tax credit (an accounting entry recognising future tax relief early) of ₹32.84 crore, lifting restated net profit to ₹61.38 crore above pre-tax profit of ₹28.53 crore. The group also extended the accounting lifespan of rented office equipment from 3-5 years to 3-10 years in FY24, and furniture from 8 to 10 years in FY25, cutting depreciation costs by a combined ₹15.36 crore across both years. These gains were booked even as accumulated business deficits stood at ₹(165.21) crore as of September 30, 2025.
  3. Software audit logs were missing alongside repeated delays in tax payments Major - Examiners found that backup logs for accounts stored on Indian servers were missing for all of FY24, and software edit logs (audit trails recording who altered financial data) were disabled or missing across several systems through September 30, 2025. Statutory auditors issued formal CARO remarks (examiner notes on compliance failures) for regular delays in depositing government dues, including 35 late GST payments totaling ₹16.97 crore in the six months ended September 30, 2025. These accounting gaps follow an April 2023 cloud database breach that leaked customer personal data.
  4. Historical corporate filings are missing and foreign exchange settlements remain pending Minor - Several corporate records are untraceable, including rights issue acceptance letters and statutory share allotment filings. The company paid Reserve Bank of India penalties of ₹26,530 in February 2018 and ₹405,709 in November 2025 for past foreign exchange violations. A compounding application (a formal settlement process to clear past regulatory breaches) filed on February 18, 2026 for late filings and excess overseas funds was still pending with the central bank.
  5. Company lent ₹4.76 crore to employee trust while executives plan share sales Minor - In FY24, the company granted ₹4.76 crore in long-term loans at 7.15% interest to the RM Employee Benefit Trust, which used the money to buy company shares including the stake now disputed by the former director. Outstanding loans to the trust stood at ₹4.76 crore with accrued interest of ₹0.54 crore as of September 30, 2025. Key managers and senior leaders have declared plans to sell up to 811,491 option-converted shares within three months after listing on the exchange.
  6. Promoter holds below statutory minimum and received sub-paise rights shares Minor - Sole promoter Geetansh Bamania holds 14.69% of equity before the offer, failing to meet the mandatory 20% minimum post-listing promoter quota and requiring institutional shareholders to contribute shortfall shares. On July 24, 2025, the promoter bought 4,092 shares on a rights basis at ₹10 face value (split-adjusted ₹0.01 per share), followed by a 123:1 bonus issue on March 7, 2026 that allotted him 14,777,589 bonus shares. His executive contract was also amended to ₹2.40 crore yearly salary plus a bonus equal to 1% of net profit.
  7. Working capital stays negative while subscriber rental assets have zero insurance Minor - Current liabilities (short-term bills due within a year) exceeded current assets by ₹83.17 crore as of September 30, 2025, leaving short-term assets covering only 53% of short-term dues. The company also had past debt servicing delays, including a 3-day bank installment delay in January 2025. Physical assets were insured for only 67.10% of their value as of September 30, 2025, with zero insurance coverage on rental items placed across 227,511 subscriber homes or goods in transit.
  8. Impaired customer receivables reached ₹21 crore as utilization softened Minor - Gross customer receivables rose to ₹59.86 crore as of September 30, 2025, with impaired dues (bills unpaid after six months) reaching ₹20.97 crore, covered by ₹21.18 crore in bad-debt provisions. Customer bills overdue for over three years grew from zero in FY24 to ₹11.00 crore as of September 30, 2025. During this period, the share of assets out on active rental slipped from 91.07% in FY23 to 83.91% for the six months ended September 30, 2025, while employee attrition stood at 22.34%.

What to watch

Bottom line: This is an expanding consumer rental business where restated profits depend heavily on deferred tax entries and extended asset lifespans. The primary risks center on the ongoing tribunal case challenging promoter ownership, alongside persistent working capital deficits and uncollected customer balances. Investors should weigh the pending court challenge against the company's plan to clear bank borrowings using offer proceeds.