Synopsis:
GNG Electronics Limited IPO opens July 23 with a fresh issue and OFS worth Rs. 462.44 crore. GMP indicates a 38.82 percent premium over the Rs. 237 cap price.
GNG Electronics Limited is launching its Initial Public Offering (IPO) to raise funds through both fresh issue and offer for sale. The IPO is a book-built issue worth Rs. 460.44 crore, comprising a fresh issue of 1.69 crore shares totaling Rs. 400.00 crore and an offer for sale of 0.26 crore shares amounting to Rs. 60.44 crore.
The IPO opens for subscription on July 23, 2025, and closes on July 25, 2025. The shares will be listed on NSE and BSE on Wednesday, July 30, 2025. Here’s everything you need to know.
GMP of GNG Electronics Limited IPO
As of July 22nd, 2025, the shares of GNG Electronics Limited in the grey market were trading at a 38.82 percent premium. The shares in the Grey Market traded at Rs. 329. This gives it a premium of Rs. 92 per share over the cap price of Rs. 237.
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Overview of GNG Electronics Limited
GNG Electronics Limited was founded in 2006 and specializes in refurbishing laptops, desktops, and ICT devices for customers in India and worldwide. The company operates under its popular brand “Electronics Bazaar,” offering a complete cycle from sourcing to after-sales service, including warranties and doorstep delivery.
The company also provides value-added services like e-waste management, IT asset disposal (ITAD), easy payment plans, and assured buyback programs. It works with major retail chains like Vijay Sales and OEM brands such as HP and Lenovo to run efficient device trade-in programs.
As of March 31, 2025, GNG Electronics has a presence in 38 countries and a wide distribution network of over 4,154 touchpoints. The company employs 1,194 people and continues to grow its global footprint while supporting sustainability through refurbished electronics and responsible recycling.
Promoters of GNG Electronics Limited
The company’s promoters are Sharad Khandelwal, Vidhi Sharad Khandelwal, Amiable Electronics Private Limited, and Kay Kay Overseas Corporation. The promoters bring strong industry experience and business leadership.
GNG Electronics Limited Selling Shareholders
The Offer for Sale includes 35,000 shares each by Sharad and Vidhi Khandelwal. Amiable Electronics Private Limited will offload up to 24.8 lakh shares. These shares form part of the IPO, providing partial exit to the promoters.
Lead Managers of GNG Electronics IPO
Motilal Oswal Investment Advisors, IIFL Capital Services, and JM Financial are the book-running lead managers for this IPO. Bigshare Services Private Limited will act as the registrar to the offer.
Objectives of the IPO Offer
GNG Electronics Limited plans to utilize the IPO proceeds for two primary purposes. The company will allocate Rs. 320 crore towards the prepayment or repayment of certain outstanding borrowings availed by itself and its material subsidiary, Electronics Bazaar FZC. This will help improve the company’s debt profile and reduce interest costs.
The remaining funds will be used for general corporate purposes, which may include strengthening operational infrastructure, improving brand visibility, and supporting business growth initiatives.
Financial Analysis of GNG Electronics Limited
GNG Electronics Limited’s revenue has increased from Rs. 1,138.14 crore in FY24 to Rs. 1,411.11 crore in FY25, which represents a growth of 23.98 percent. The net profit has increased by 31.96 percent from Rs. 52.31 crore in FY24 to Rs. 69.03 crore in FY25.
GNG Electronics Limited’s revenue and net profit have grown at a CAGR of 46.27 percent and 45.9 percent, respectively, over the last two years. Further, the company’s EBITDA has increased by 48.57 percent, from Rs. 84.90 crore in FY24 to Rs. 126.14 crore in FY25.
GNG Electronics Limited vs Peers
GNG Electronics Limited reported total revenue of Rs. 1,420.37 crore in FY2024 with an EPS of Rs. 7.09 and RoNW of 30.40 percent. In comparison, Newjaisa Technologies Limited earned Rs. 66.45 crores with an EPS of Rs. -0.32 and a RoNW of -1.45 percent. The company’s net asset value per share is Rs. 23.31, compared to Rs. 22.09 for Newjaisa Technologies Limited.
Strengths of GNG Electronics Limited
- Largest refurbisher for laptops and desktops in India and a global player in ICT device refurbishment.
- Integrated supply chain covering sourcing, refurbishment, and warranty-backed sales.
- Diverse revenue streams from different geographies, including the Middle East and USA.
- Experienced promoters run the company with strong knowledge of ICT and the electronics business.
- Strong customer relationships help maintain repeat business and steady revenue throughout the year.
Weaknesses of GNG Electronics Limited
- Most revenue comes from top ten customers, which increases risk if they leave.
- Significant portion of revenues is overseas, exposing it to currency and geopolitical risks.
- Top few suppliers provide most inventory, causing problems if they delay or stop supplies.
- The company has high debt, which increases interest payments and the financial burden on the business.
- Sales from direct consumers are falling, affecting the growth in the retail customer segment.
Conclusion
GNG Electronics IPO offers investors exposure to India’s growing refurbished electronics market. Strong revenue growth, brand equity, and operational scalability make it an interesting option. However, market risks and promoter stake dilution should be considered before investing.
Written By – Nikhil Naik
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