IPO closes on 25 Jul'25
GNG Electronics Ltd
Minimum Investment
₹ 14,931 / 63 shares
Grey market premium
₹ 96 (41% premium)
Our Verdict:
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- GNG Electronics Ltd (GNG) is India's largest refurbisher of laptops and desktops. The company has delivered strong growth from FY23–25, underpinned by solid return metrics and profit margins.
- As of March 31, 2025, the total outstanding borrowings stood at Rs 434.36 crore. GNG plans to use the IPO proceeds to repay Rs 320 crore of debt in FY26, which will significantly reduce interest costs and further boost profitability.
- In terms of valuation, the IPO is priced at a P/E multiple of 33x based on FY25 earnings, which appears reasonable. The global refurbished electronics market is projected to grow at a 17.4% CAGR, with India’s market expected to expand at 30% through FY30. GNG has already doubled its customer base in the past two years and is actively expanding its operations across key regions. With a solid position in this rapidly growing market, the company is well-positioned for sustained future growth.
- Given these factors, investors are advised to subscribe to the IPO from a medium-to-long-term perspective.
About the company
Founded in
19 Oct'06
Managing director
Sharad Khandelwal
- GNG Electronics is India’s largest refurbisher and distributor of Information and Communication Technology (ICT) products, including laptops, desktops and accessories, operating under its flagship brand "Electronics Bazaar." The company has developed a vertically integrated business model that spans sourcing, refurbishment, certification, retail and post-sale support.
- GNG operates 5 advanced refurbishment and logistics facilities across India, the UAE and the US, with presence in ~38 countries through 4,150+ touchpoints. It collaborates with leading Original Equipment Manufacturers (OEMs) such as HP, Lenovo and Dell, and holds key certifications that underscore its commitment to quality and sustainability.
STRENGTHS
- Market Leadership: GNG is India’s largest refurbisher of laptops and desktops and ranks among the largest refurbishers of ICT devices globally. The company has a strong presence across India, the UAE and the US.
- Solid Financial Performance: Between FY23 and FY25, GNG delivered strong financial performance with a 46% CAGR in operating revenue, 59% in EBITDA and 46% in net profit.
- Healthy Return Metrics: GNG showcases strong operational efficiency, with a Return on Equity (RoE) of 30.4% and Return on Capital Employed (RoCE) of 17.31% as of FY25.
- Margin Profile: GNG posted an impressive EBITDA margin of 8.94% and a net profit margin of 4.89% in FY25, significantly outperforming its peer.
- Strong Procurement Network: GNG has built robust long-term relationships with procurement partners, growing its procurement network from 265 partners in FY23 to 557 in FY25, with plans for further expansion. Strategic partnerships with brands like HP and Lenovo enhance credibility and strengthen the company's market positioning.
RISK FACTORS
- Client Concentration: As of FY25, approximately 47% of GNG’s revenue was derived from its top ten customers. A decline in business from these key customers could negatively impact the company’s operations and financial performance.
- Dependency on Subsidiary: In FY25, 66.66% of GNG’s operating revenue was derived from its material subsidiary, Electronics Bazaar FZC (EB FZC). The company's financial performance is closely linked to the operating income and cash flows of this subsidiary. Any adverse changes in EB FZC’s business, or modifications in GNG’s shareholding in EB FZC, could materially impact its overall operations and financial condition.
- Cash Flow Concerns: GNG has experienced negative cash flow from operations for the past three fiscal years. Continued negative cash flows could jeopardize business continuity and financial stability.
- Legal Risks: GNG and its promoters are currently involved in legal proceedings amounting to approximately Rs 55 crore. Adverse outcomes from these legal proceedings could harm the company's reputation and business prospects.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 460.44 crore
Fresh Issue
₹ 400 crore
OFS
₹ 60.44 crore
Price range
₹ 225 - 237
Lot size
63 shares
Issue Objective
The net proceeds from the fresh issue will be utilised towards:
- Prepayment or repayment of certain borrowings availed by the company and its subsidiary (EB FZC); and
- General corporate purposes.
Dates
Bidding open
23 Jul'25
Bidding close
25 Jul'25
Allotment date
28 Jul'25
Refund date
29 Jul'25
Listing
30 Jul'25
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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