GNG Electronics Limited, a major Indian player in the refurbished ICT devices sector, is coming up with its Initial Public Offering (IPO) scheduled to open for subscription from July 23 to July 25, 2025. The company is set to raise ₹460.43 crore through a mix of fresh issue and offer for sale (OFS).

The IPO comprises a fresh issue of 1.69 crore shares worth ₹400 crore, and an OFS of 25.5 lakh shares aggregating to ₹60.44 crore. The price band for the IPO has been set at ₹225 to ₹237 per share, and the minimum lot size for retail investors is 63 shares, translating into a base investment of ₹14,931.

This IPO will be listed on both the BSE and NSE, with a tentative listing date of July 30, 2025. The issue is being managed by Motilal Oswal Investment Advisors Ltd, while Bigshare Services Pvt Ltd will act as the registrar.

Anchor Investment and Allotment Schedule

On July 22, 2025, GNG Electronics successfully raised ₹138.13 crore from anchor investors, showcasing strong institutional interest. The allotment for the IPO is expected to be finalized on July 28, with shares credited to Demat accounts and refunds processed on July 29.

The cut-off time for UPI mandate confirmation is 5 PM on July 25.

Company Overview

Founded in 2006, GNG Electronics Ltd. has established itself as a leader in the refurbishment and resale of laptops, desktops, and ICT devices, both in India and internationally. The company operates under the brand "Electronics Bazaar", providing services that span from procurement, refurbishment, sales, after-sales service, and warranty support.

Its clientele includes reputed retail chains and OEMs such as Vijay Sales, HP India, and Lenovo. The company also provides value-added services like IT asset disposal (ITAD), e-waste management, buyback programs, and on-site installation, ensuring a complete lifecycle management solution for ICT devices.

GNG Electronics has built a vast sales network of 4,154 touchpoints across 38 countries, including strongholds in India, the USA, Europe, Africa, and the UAE.

IPO Objectives

The net proceeds from the IPO will be utilized towards:

1. Repayment or prepayment of borrowings availed by the company and its material subsidiary, Electronics Bazaar FZC, to the tune of ₹320 crore.

2. General corporate purposes, supporting business expansion and working capital needs.

Financial Performance

GNG Electronics has demonstrated strong financial growth. For the fiscal year ended March 31, 2025, the company reported:

• Revenue: ₹1,420.37 crore (up 24% from FY24)

• Profit After Tax (PAT): ₹69.03 crore (up 32% from FY24)

• EBITDA: ₹126.14 crore

• Net Worth: ₹226.46 crore

• Total Borrowings: ₹446.92 crore

The key performance metrics include:

• ROE: 30.40%

• ROCE: 17.31%

• PAT Margin: 4.89%

• EBITDA Margin: 8.94%

• Debt/Equity Ratio: 1.95

• Price to Book Value: 10.17

Shareholding Pattern

Before the IPO, promoters held 95.01% of the shares. Post-issue, this stake will be diluted in line with the public offering, although the exact post-issue figure is yet to be finalized. The promoters include Sharad Khandelwal, Vidhi Sharad Khandelwal, Amiable Electronics Pvt Ltd, and Kay Kay Overseas Corporation.

Reservation Structure

Out of the 1.94 crore shares being offered:

• 50% (97,13,818 shares) is reserved for Qualified Institutional Buyers (QIBs)

• 15% (29,14,146 shares) for Non-Institutional Investors (NIIs)

• 35% (67,99,673 shares) for Retail Investors

• Additionally, 58,28,290 shares were allotted to anchor investors

The maximum number of retail applicants is expected to be 1,07,931.

Investment Details: Lot Size

• Retail Investors: Minimum 1 lot (63 shares) = ₹14,931; Maximum 13 lots (819 shares) = ₹1,94,103

• S-HNIs: 14 to 66 lots = ₹2,09,034 to ₹9,85,446

• B-HNIs: Minimum 67 lots (4,221 shares) = ₹10,00,377

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, Monarch Surveyors & Engineering Consultants, TSC India, NSDL.

The Current active IPO are Swastika Castal, Savy Infra.

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