GNG Electronics Limited, the parent company of Electronics Bazaar, is all set to launch its Initial Public Offering (IPO) on July 23, 2025. The company is making headlines for its promising financials and a healthy Grey Market Premium (GMP), making it one of the most awaited IPOs of the week. Let us take a detailed look at the issue structure, financial performance, objectives of the IPO, and whether investors should consider subscribing to this offer.

IPO Structure and Issue Size

The GNG Electronics IPO is a Book Built Issue with a total value of ₹460.44 Crores. The offering includes:

• Fresh Issue: 16.87 lakh equity shares worth ₹400 Crores

• Offer for Sale (OFS): 25.50 lakh equity shares worth ₹60.44 Crores

The IPO will open for subscription on July 23, 2025, and close on July 25, 2025. The allotment date is expected to be July 28, 2025, and the shares are likely to be listed on both NSE and BSE on July 30, 2025.

Price Band, Lot Size & Valuation

The price band of the IPO has been set at ₹225 to ₹237 per equity share. Based on the upper end of the price band:

• The market capitalisation of GNG Electronics will stand at ₹2,342.07 Crores

• Lot Size: Retail investors can apply in lots of 63 shares

• Retail Minimum Investment: ₹14,931

• HNI Minimum Investment: 14 lots (882 shares) amounting to ₹2,09,034

The IPO is managed by Motilal Oswal Investment Advisors, IIFL Capital Services (formerly IIFL Securities), and JM Financial as the Book Running Lead Managers (BRLMs). The registrar to the issue is Bigshare Services Pvt. Ltd.

Grey Market Premium (GMP) and Market Sentiment

As of July 21, 2025, the GMP for the GNG Electronics IPO is ₹43, implying an expected listing price of around ₹280, which is an 18.14% premium over the upper price band.

While GMP is not an official or regulated indicator, it provides a glimpse into investor sentiment and demand in the unlisted space. With a positive GMP, investors are eyeing listing gains, provided overall market conditions remain stable.

Objectives of the Issue

GNG Electronics plans to utilise the net proceeds from the IPO for the following objectives:

1. ₹3,200 Million for prepayment/repayment of certain borrowings of the Company and its material subsidiary, Electronics Bazaar FZC.

2. Remaining funds to be used for general corporate purposes.

These objectives reflect the company’s commitment to strengthening its balance sheet and funding its expansion strategy.

About the Company

GNG Electronics Limited, through its brand Electronics Bazaar, is focused on refurbished laptops and desktops, catering to the growing demand for affordable computing devices. Their customer base includes individuals, small businesses, corporates, and institutions.

They promote sustainability and circular economy principles, ensuring high-quality yet budget-friendly tech products. Their solutions bridge the digital divide in a country like India where cost-effective access to technology is essential.

Under the leadership of promoter Sharad Khandelwal, who has over 29 years of experience in the information and communication technology sector, the company has grown rapidly, offering refurbished ICT (Information and Communication Technology) products with a commitment to quality and reliability.

Financial Performance

The company has demonstrated consistent revenue growth over the last three financial years:

These figures indicate robust growth both in topline and profitability. The EBITDA margin expansion and positive PAT trajectory reflect operational efficiency and a strong business model.

Key Ratios & Valuation Metrics

• Pre-issue EPS (FY24): ₹7.09

• Post-issue EPS (FY24): ₹6.97

• Pre-issue P/E Ratio: 33.42x

• Post-issue P/E Ratio: 34.03x

• ROCE: 17.31%

• ROE: 30.40%

• Return on Net Worth (RoNW): 30.40%

The valuations suggest that the IPO is reasonably priced compared to its growth potential, although it trades at a premium relative to traditional IT hardware peers. However, the high ROE and asset-light model justify the higher multiple.

Allotment Status – How to Check

Investors can check their IPO allotment status on or after July 28, 2025 via the following steps:

1. Go to the Bigshare Services Private Limited website (Registrar).

2. Select “GNG Electronics IPO” from the dropdown.

3. Enter either your Application Number, PAN, or DP Client ID.

4. Submit the details to see the status.

This simple process ensures transparency and helps investors take next steps depending on allotment outcome.

Expert Recommendation

The combination of strong financial growth, sustainability-led product offerings, and positive GMP makes GNG Electronics Limited IPO an attractive proposition for listing gains.

The refurbished electronics market is gaining traction due to affordability and eco-conscious consumer behaviour, positioning GNG well for future scalability.

Verdict: Apply for Listing Gains

While the long-term prospects depend on how the company sustains margins, scales operations, and differentiates in a competitive market, the current signals from market sentiment and financial performance are encouraging for short-term investors.

Disclaimer:
This analysis is for educational and informational purposes only. It does not constitute investment advice or a solicitation to buy or sell any securities. Investors should perform their own due diligence or consult a SEBI-registered financial advisor before making any investment decisions. All data is based on information available as of the publication date and may be subject to change.

The Upcoming IPOs in this week and coming weeks are Sellowrap Industries, Repono, Shanti Gold International, Indiqube Spaces, GNG Electronics, Brigade Hotel Ventures, Patel Chem Specialities, TSC India, NSDL.

The Current active IPO are Monarch Surveyors & Engineering Consultants, Swastika Castal, Savy Infra.

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