GNG Electronics IPO: Price Band, Financials, Key Dates, GMP And More — All You Need To Know
The market value of GNG Electronics at the upper end of the IPO price band is Rs 2,702 crore.
GNG Electronics Ltd., which operates under the brand Electronics Bazaar, is set to launch its initial public offering this week to raise Rs 460 crore through the sale of equity. The IPO will open on July 23 and close on July 25. Shares will be offered in the range of Rs 225-237 apiece.
The company applied for an IPO with market regulator SEBI in March and received approval in June. The IPO will consist of a fresh issue of shares worth Rs 400 crore and an offer for sale of up to 25.5 lakh shares, according to the red herring prospectus.
The market value of GNG Electronics at the upper end of the price band is Rs 2,702 crore.
The IPO share allotment will be finalised by July 28. Shares of GNG Electronics will debut on the BSE and NSE on July 30.
Motilal Oswal Investment Advisors Ltd., IIFL Capital Services Ltd. and JM Financial Ltd. are the book running lead managers for the IPO.
About GNG Electronics
Mumbai-based GNG Electronics refurbishes laptops, desktops, and other ICT devices and has a significant presence across India, the US, Europe, Africa, and the UAE. It operates under the brand 'Electronics Bazaar.'
The company follows a repair-over-replacement approach, which provides cost advantages and helps achieve sustainability by reducing carbon footprint.
It operates across the full refurbishment value chain i.e., from sourcing to refurbishment to sales, to after-sale services and providing warranty.
GNG Electronics IPO: Use Of Proceeds
Proceeds from the fresh issue up to Rs 320 crore will be used to reduce debt, and the rest will be used to meet general corporate purposes. As on March 31, the company's total borrowings were Rs 582.75 crore on a consolidated basis.
Promoters Sharad Khandelwal and Vidhi Sharad Khandelwal will be offloading 35,000 shares via the OFS route. They each own 18.5% equity. Amiable Electronics Pvt., which owns 57.29% stake, will sell the rest 24.8 lakh shares.
GNG Electronics will not receive any proceeds from the OFS of Rs 60.4 crore.
The promoter shareholding will reduce from 95.01% to 78.7% after the IPO.
Financial Performance
GNG Electronics' revenue rose by 24% to Rs 1,411 crore in fiscal 2025 from Rs 1,138 crore in the previous year. Net profit surged 32% to Rs 69 crore.
On an operating basis, earnings before interest, tax, depreciation and amortisation rose 47.5% to Rs 116.88 crore. Margin expanded to 8.28% from 6.96%.
Analysts at Bajaj Broking said if fiscal 2025 annualised earnings are attributed to valuation, then the IPO price is at a price-to-earnings of 39.17. Based on FY24 earnings, the P/E stands at 51.63.
GNG Electronics IPO GMP
The grey market premium for GNG Electronics IPO stood at Rs 92 per share at 11:30 a.m. on July 22. With the upper price band for the IPO set at Rs 237 apiece, the GMP indicates an estimated listing price of Rs 329 per share, according to InvestorGain.
Current GMP trends show an estimated listing gain of 39% over the upper limit of the issue price.
It should be noted that GMP or grey market price is not an official price quote for the stock and is based on speculation.
Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisers and read the red herring prospectus thoroughly before placing bids.
