Rental startup RentoMojo is facing a legal challenge ahead of its proposed initial public offering. Former co-founder and director Ajay Nain has approached the National Company Law Tribunal seeking to halt the IPO.
According to the company’s draft red herring prospectus, Nain filed a petition on March 25, 2026, before the Bengaluru bench. The plea names the company, its promoter, directors, chief financial officer, RM Employee Benefit Trust, and Beacon Trusteeship Limited, among others, as reported by Inc 42.
Allegations Around Share Sale
Nain exited the company in August 2023. He sold 2,223 equity shares, representing a 9.41 percent stake, to the employee benefit trust.
In his petition, he has alleged that incomplete or inaccurate information was shared during the transaction. He has sought to declare the share sale void and restore his shareholding.
The former director has also requested the removal of the promoter from the board and management. Additionally, he has sought a waiver to maintain the petition under relevant provisions of the Companies Act.
Plea to Halt IPO Process
Nain has sought interim relief to restrain RentoMojo from proceeding with its IPO. This includes preventing the company from filing its DRHP or taking further steps towards the public issue.
He has also requested restrictions on share transfers by the trust and other shareholders. The matter has not yet been listed for hearing.
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Company Moves Ahead with IPO Plans
Meanwhile, RentoMojo has taken a preemptive step by filing caveats on March 26 and 27. This ensures that no order is passed without hearing its side.
The company has also filed its DRHP with the Securities and Exchange Board of India to raise Rs 150 crore through a fresh issue.
The proposed IPO includes a fresh issue of shares worth Rs 150 crore and an offer for sale of up to 2.84 crore equity shares by existing shareholders.
