GNG Electronics Ltd IPO (GNG Electronics IPO) bidding window will open for subscription on July 23. Ahead of the opening of the subscription window, here are five key things to know about GNG Electronics IPO:
GNG Electronics IPO: Issue Size, Listing Date, Price Band
GNG Electronics IPO is worth Rs 460.43 crore. The hardware repairing company's public issue consists of a fresh issuance of 1.69 crore shares amounting to Rs 400 crore and an offer for sale of 26 lakh shares aggregating to Rs 60.44 crore.
GNG Electronics IPO price band has been fixed at Rs 225 to Rs 237 per share. The minimum lot size to apply for the public issue for retail investors has been fixed at 1 lot consisting of 63 shares, amounting to an investment of Rs 14,175. The minimum lot size for Small Non-Institutional Investors (sNII) is 14 lots or 882 shares which amounts to an investment of Rs 2,09,034.
GNG Electronics has set aside 50.00 per cent of the net offer size for Qualified Institutional Buyers category. Subsequently 35 per per cent of the issue size has been set aside for retail individual investors. The remaining 15 per cent of the net issue has been kept aside for the Non Institutional Investor (NII) category.
GNG Electronics IPO share allotment status is likely to be finalised on July 28. Subsequent to the allotment of shares, refunds will be initiated for unsuccessful bidders on July 29, and successful bidders will receive shares of GNG Electronics in their demat accounts on the same day. Shares of GNG Electronics will make their debut on the NSE and BSE. The electronics reseller's shares will list on the exchanges on July 30.
GNG Electronics: Key Financials
GNG Electronics' revenue from operations increased by over 24 per cent to Rs 1420.37 crore in FY 2024-25 compared to Rs 1143.8 crore in FY 2023-24. The electronics repair company's profit-after-tax surged over 32 per cent to Rs 69.03 crore in FY25 compared to Rs 52.31 crore in the preceding fiscal. The net worth of GNG Electronics grew by over 38 per cent to Rs 226.46 crore compared to Rs 163.14 crore in the preceding fiscal.
GNG Electronics: Key Competitors
GNG Electronics mentioned in its Red Herring Prospectus that it is one of the largest Microsoft authorised refurbishers as of FY25.The company mentioned that it does not have any other listed competitors apart from Newjaisa Technologies Ltd.
GNG Electronics: Business Model
According to GNG Electronics it is the largest refurbisher of laptops and desktops in India. The company operates in geographies such as India, USA, Europe, Africa and UAE. The company follows a repair-over-replacement approach. GNG Electronics operates under the brand name 'Electronics Bazaar'.
GNG Electronics IPO: Risks and Strengths
Here's a look at some of the key risks related to GNG Electronics according to the company's RHP:
The company disclosed in its RHP that it generates a big part of its operational revenue from sales of laptops, and thus its continued success in selling laptops is necessary for its business and prospects. A potential decline in the demand for laptops can affect the company's business adversely.
GNG Electronics added that it depends on a limited number of suppliers for its inventory. Thus any disruption in the availability of inventory can adversely impact its operations.
The company disclosed in its RHP that it has witnessed reduction in its business-to-consumer (B2C) sales in Fiscal 2025, Fiscal 2024 and Fiscal 2023.
GNG Electronics also said that it relies heavily on its sales network for the distribution of the products it sells, thus any disruption in the network may adversely affect its business.
Here's a look at some of the key strengths of GNG Electronics according to the company's RHP:
GNG Electronics is India's biggest refurbisher of laptops and desktops and one of the largest refurbishers of Information and Communications Technology (ICT) devices overall.
The company claims to have a strong global supply chain comprising a long tail of vendors and a wide customer base.
GNG Electronics has well - established refurbishing capabilities and state – of - art infrastructure according to the company's RHP.
The company claims to have an experienced management team and qualified personnel with significant industry experience.
GNG Electronics IPO: Objective
GNG Electronics plans to use Rs 320 crore out of the total proceeds of the public issue to repay its outstanding borrowings. The electronics refurbishing co also plans to use the proceeds to fulfill general corporate purposes.
