Legal proceedings underway with focused individuals in a cluttered office.
RentoMojo’s anticipated Initial Public Offering (IPO) has encountered a significant legal hurdle following a petition filed by its co-founder and former COO, Ajay Nain, with the National Company Law Tribunal (NCLT). Nain alleges that he was pressured into selling his 9.41% stake in the company for INR 1.5 Cr under duress, claiming co-founder and CEO Geetansh Bamania and other executives misrepresented the company’s financial health.
The core of Nain’s grievance centers on the valuation at which he divested his shares. He contends that he was led to believe the company was facing imminent liquidation, making his exit a “golden chance.” However, he asserts that subsequent funding rounds and secondary transactions occurred at significantly higher valuations, suggesting his stake was undervalued. Nain is seeking to have the transaction declared void, his shares reinstated, and the IPO process halted until the dispute is resolved.
Beyond the financial dispute, Nain has also raised concerns about alleged “oppression and mismanagement.” He claims he was excluded from crucial company information, including financial details and Annual General Meetings (AGMs), and was not informed about a legal FIR concerning provident fund contributions.
This legal challenge emerges at a critical juncture for RentoMojo, which has filed its Draft Red Herring Prospectus (DRHP) for an IPO aiming to raise up to INR 150 Cr through a fresh issue, alongside an offer for sale of up to 2.84 Cr shares. RentoMojo has stated that it considers the matter sub-judice and has declined further comment.
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