GNG Electronics Limited, the parent company of Electronics Bazaar, is a leader in providing high-quality refurbished ICT devices, including laptops and desktops, aimed at a broad customer base ranging from individuals to large organisations. Known for its sustainability-driven business model, GNG Electronics is now stepping into the public markets with its much-anticipated Initial Public Offering (IPO).

This Book Built Issue comprises a total size of ₹460.44 crores, broken into a fresh issue of ₹400 crore (equivalent to 168.77 lakh shares) and an offer for sale (OFS) worth ₹60.44 crore (or 25.50 lakh shares). The IPO subscription window is open from July 23, 2025, to July 25, 2025. The allotment of shares is likely to be finalized on or around July 28, 2025, and the listing on both BSE and NSE is expected on July 30, 2025.

IPO Price Band, Lot Size, and Minimum Investment

The price band has been set between ₹225 to ₹237 per equity share. At the upper end of the price band, the market capitalisation of GNG Electronics will be approximately ₹2,702.07 crore. The lot size is 63 shares, which means retail investors must invest a minimum of ₹14,931. For High-Net-Worth Individuals (HNIs), the minimum application size is 14 lots, or 882 shares, totalling an investment of ₹2,09,034.

The issue is managed by prominent book-running lead managers – Motilal Oswal Investment Advisors Limited, IIFL Capital Services Limited, and JM Financial Limited, while Bigshare Services Private Limited is the registrar to the issue.

Strong Anchor Book Response and GMP Buzz

Ahead of the public offering, GNG Electronics successfully raised ₹138.13 crore from Anchor Investors by allocating 58,28,290 equity shares at the upper price band of ₹237 per share. This early commitment from institutional buyers signals positive investor sentiment.

Meanwhile, the Grey Market Premium (GMP) is showing a robust ₹43 gain over the IPO price, implying a potential 18.14 percent listing premium. Though GMP data is unofficial and not regulated, it often serves as an informal indicator of market sentiment.

Live IPO Subscription Status

As of 11:00 AM on July 23, 2025, the IPO is subscribed 0.39 times on its first day. This is expected to build momentum over the next two days of the subscription period. Investors can track real-time subscription data directly on the BSE website.

Step-by-Step Guide: How to Check Allotment

Allotment for GNG Electronics IPO will be announced on Monday, July 28, 2025. Here is how you can check your allotment status:

1. Visit the registrar’s website

2. Select GNG Electronics Limited IPO from the dropdown list

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

4. Submit the form to see if you’ve been allotted shares

IPO Objectives and Fund Utilisation

GNG Electronics plans to use the net proceeds from the fresh issue for the following purposes:

1. ₹3,200 million will be used for prepayment or repayment of borrowings availed by the company and its material subsidiary, Electronics Bazaar FZC

2. The remaining amount will be utilised for general corporate purposes

This focus on debt reduction and business expansion indicates a prudent capital allocation strategy that supports long-term sustainability.

Financial Performance and Key Metrics

Under the visionary leadership of Sharad Khandelwal, a veteran with 29 years of experience in the Information and Communication Technology (ICT) sector, GNG Electronics has shown consistent financial growth. Here's a quick look at the performance for the last three financial years:

• Revenue from operations:

  • FY25: ₹14,203.67 million

  • FY24: ₹11,437.97 million

  • FY23: ₹6,627.86 million

• EBITDA:

  • FY25: ₹1,261.44 million

  • FY24: ₹849.04 million

  • FY23: ₹500.40 million

• Profit After Tax (PAT):

  • FY25: ₹690.33 million

  • FY24: ₹523.05 million

  • FY23: ₹324.28 million

These numbers show a strong upward trajectory, highlighting robust growth in both revenue and profitability.

Valuation and Key Ratios

At the upper end of the price band (₹237), the valuation ratios for FY24 are:

• Pre-issue EPS: ₹7.09

• Post-issue EPS: ₹6.04

• Pre-issue P/E ratio: 33.42x

• Post-issue P/E ratio: 39.26x

• Industry P/E: Not explicitly benchmarked

• ROCE: 17.31 percent

• ROE: 30.40 percent

• RoNW: 30.40 percent

While the IPO is fully priced, the strong return ratios and profit growth justify the valuation to a significant extent.

Expert Recommendation: Apply for Listing Gains

Considering the GMP of ₹43, the high return on equity, and strong fundamentals, the IPO offers good potential for listing gains. Although the valuation is on the higher side, the company’s growth momentum, brand recognition through Electronics Bazaar, and the backing of strong institutional investors add credibility.

Our verdict:
Apply to GNG Electronics IPO for listing gains, especially if you are a short-term investor looking to benefit from market momentum.

Disclaimer: This content is for educational and informational purposes only and does not constitute financial advice or an investment recommendation. All investors should seek professional advice before investing. Market investments carry risks, and past performance is not indicative of future results.

The Upcoming IPOs in this week and coming weeks are Takyon Networks, Mehul Colours, Aditya Infotech, Sri Lotus Developers & Realty, Lakshmi India Finance, Jyoti Global Plast, B.D. Industries (Pune), Kaytex Fabrics, Umiya Mobile, Shree Refrigerations, Sellowrap Industries, Repono, Shanti Gold International, Patel Chem Specialities, NSDL.

The Current active IPO are Brigade Hotel Ventures, Indiqube Spaces, GNG Electronics, TSC India, Monarch Surveyors & Engineering Consultants.

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