Electronics Bazaar's owner GNG Electronics Ltd. filed draft papers for its initial public offering on Dec. 14. The IPO has a fresh issue component of up to Rs 825 crore and an offer for sale of up to 97 lakh shares.
Promoters Sharad and Vidhi Khandelwal will be selling up to 35,000 shares each through the offer, while Amiable Electronics Pvt. will offload up to 96.3 lakh shares through the offer. Together, the three sellers hold 94.3% stake in the company.
From the fresh issue proceeds, Rs 320 crore will be used to repay debt and Rs 260 crore will be used to fund working capital, according to the draft red herring prospectus.
GNG Electronics is India's largest refurbisher of laptops and desktops and, according to a company release, is a certified refurbishment partner with Lenovo Group and HP Inc. The company's portfolio includes nearly 5,000 stock keeping units as of Sept. 30 and it sells refurbished devices in 35 countries including USA and UAE.
The retailer's only listed peer is the National Stock Exchange-listed Newjaisa Technologies Ltd. The small and medium enterprise has a market capitalisation of Rs 297 crore, and a total income of Rs 62 crore for fiscal 2024, compared to GNG's Rs 1,144 crore.
Motilal Oswal Investment Advisors Ltd., IIFL Capital Services Ltd. and JM Financial Ltd. are the bankers handling the issue.
GNG Electronics FY24 Highlights (YoY)
Revenue rose 73% to Rs 1,138 crore versus Rs 660 crore
Ebitda rose 69% to Rs 79 crore versus Rs 47 crore
Ebitda margin fell to 6.9% versus 7.1%
Net profit rose 61% to Rs 52 crore versus Rs 32 crore
The company reported a net profit of Rs 35 crore in the half year ending Sept. 30, and has not paid a dividend since fiscal 2022.
GNG's half-year revenue stood at Rs 608 crore and operating income was at Rs 58 crore. The operating income's margin against the top line came up to 9.6%.
As of Sept. 30, the company has a cash balance of Rs 86 crore, including bank balances.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
