GNG Electronics IPO: Breaking Down the ₹460 Cr Offer

Introduction

GNG Electronics Limited, India’s largest refurbisher of laptops and desktops under the Electronics Bazaar brand, is set to make a major debut in the public markets. With a total offering of ₹460.43 crore, including ₹400 crore in fresh equity and ₹60.43 crore through an offer-for-sale (OFS), the IPO has already garnered significant market buzz. In this comprehensive blog post, we delve into every aspect of GNG Electronics IPO, from key dates to valuation insights, investor sentiment, and future prospects.

IPO Overview & Timeline

Key Dates

Price Band & Lot Details

• Price Band: ₹225 – ₹237 per share 

• Face Value: ₹2 per share

• Lot Size: 63 shares (min. investment ~₹14,931)

• Retail Max Investment: Up to 13 lots (~₹1.94 lakh) 

Company & Business Snapshot

Founded in 2006, GNG Electronics specializes in refurbishing laptops, desktops, tablets, servers, and smartphones. It operates globally across 38 countries with over 4,154 touchpoints as of March 31, 2025 

What Makes them Stand Out

• Certified partnerships with OEMs like HP and Lenovo

• End-to-end refurbishment—from sourcing and repairing to after-sales services

• Clearly defined circular economy model, reducing e-waste 

Financial Performance & Use of IPO Proceeds

FY23–FY25 Performance Summary

IPO Utilization

• ₹320 cr to repay existing debt

• Remaining funds allocated to working capital and general corporate needs

Subscription & Grey Market Interest

Grey Market Premium (GMP)

• Pre-issue GMP stood between ₹74–85, indicating a potential 30–35% upside 

• On IPO day, GMP surged to ₹100–105, suggesting a 44% listing premium 

Subscription Status (Day 1)

Valuation & Broker Recommendations

Valuation Ratios

• Implied Market Cap: ₹2,700 cr (at ₹237 price band)

• P/E Ratio: ~39× based on FY25 earnings 

Broker Calls

• SBI Securities, Canara Bank, Arihant Capital, Anand Rathi, Ventura, Bajaj Broking – largely “Subscribe / Long-term” calls 

• Deven Choksey (Motilal Oswal) – "Neutral," citing premium valuation slightly above peers 

Risks & Key Investor Considerations

Top 5 Risk Factors

1. Laptop dependence: ~75% of FY25 revenue from laptops alone 

2. Component price volatility – Could squeeze margins 

3. Geographic concentration – Heavy exposure to international markets (≈75% of revenues) 

4. Customer concentration – Top 10 clients account for ~45% of revenue 

5. High debt – DSCR ~0.25×; heavy working capital needs 

Upside Potential

• Leadership in India’s refurbished electronics market

• Strong growth trajectory with volume doubling from FY23 to FY25 

• ESG-aligned model attracting institutional interest 

Reasons to Subscribe to GNG Electronics IPO

1. Robust FY23–25 revenue and profit growth

2. Asset-light business with global footprint

3. Strategic debt repayment improving margins

4. Market leadership and OEM tie-ups

5. Strong broker ratings and anchor investor backing

6. Sustainability focus (e-waste management)

7. High GMP and retail response

8. Institutional interest and brand trust

9. Recurring revenue from buy-back and after-sales

10. Potential for premium listing upside

After-IPO Expectations

What to Watch Post-Listing

• Listing premium based on GMP (~44%)

• First-quarter financials showing debt reduction and working capital efficiency

• Market expansion updates, including new geographies and product categories

• Consistent MoM volume growth and margin stability

Conclusion

The GNG Electronics IPO presents a compelling play at the intersection of sustainability, affordability, and profitability. With healthy financials, strong market sentiment, and backing from major brokerages, it offers both short-term listing potential and long-term growth appeal. However, investors should balance enthusiasm with caution around valuation, debt, and market concentrations.

If you seek a mid-sized, growth-oriented, ESG-aligned tech play, GNG could be worth considering—especially upon market listing around July 30. As always, ensure your investment aligns with your risk appetite and portfolio goals.