GNG Electronics Limited, a prominent player in the refurbished electronics market through its brand Electronics Bazaar, has witnessed a resounding response to its IPO. The public issue, which opened on July 23, 2025, and closed on July 25, 2025, was oversubscribed 14.37 times on the final day of bidding. With a strong Grey Market Premium (GMP) of ₹43, the IPO is generating significant buzz among retail and institutional investors alike.

Company Background

GNG Electronics Limited is at the forefront of making affordable technology accessible to a wide range of customers. As the parent company of Electronics Bazaar, GNG specializes in refurbished laptops and desktops, serving individuals, businesses, and organizations with cost-effective and high-quality solutions.

Under the leadership of Founder and Promoter Sharad Khandelwal, who brings over 29 years of experience in the information and communication technology (ICT) sector, GNG has embraced sustainable and technology-driven practices. His strategic guidance has led the company to become a trusted name in the refurbished ICT market in India and beyond.

GNG Electronics IPO Details

The Initial Public Offering (IPO) of GNG Electronics is a Book Built Issue with a total size of ₹460.44 Crores, comprising:

• Fresh Issue: ₹400.00 Crores (168.77 lakh shares)

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

The price band has been fixed at ₹225 to ₹237 per equity share. The market capitalisation at the upper price band (₹237) is estimated to be ₹2,702.07 Crores.

The lot size is 63 shares, meaning that retail investors need to invest a minimum of ₹14,931, while HNIs must apply for at least 14 lots, i.e., 882 shares, amounting to ₹2,09,034.

Important Dates

• IPO Opening Date: July 23, 2025

• IPO Closing Date: July 25, 2025

• Allotment Finalisation: July 28, 2025

• Tentative Listing Date: July 30, 2025

• Listing Exchanges: NSE and BSE

Lead Managers and Registrar

The IPO is managed by a strong team of Book Running Lead Managers (BRLMs):

• Motilal Oswal Investment Advisors Limited

• IIFL Capital Services Limited (formerly IIFL Securities Limited)

• JM Financial Limited

The Registrar to the Issue is Bigshare Services Private Limited, which will handle the allotment and refund process.

Grey Market Premium (GMP) and Listing Expectations

As per the GMP data on July 21, 2025, the IPO is showing a premium of ₹43, implying a potential listing price of ₹280, which is 18.14% higher than the upper band of ₹237. This suggests strong listing gains, driven by the company's solid fundamentals and robust demand in the grey market.

IPO Subscription Status

As of 11:30 AM on July 25, 2025, the IPO was subscribed 14.37 times, indicating overwhelming demand across investor categories. This level of oversubscription reflects the strong investor confidence in the company’s business model and financial trajectory.

Investors can check the live subscription status on the BSE website during IPO hours to track the category-wise bidding trends.

Anchor Investor Participation

Ahead of the public offering, Anchor Investors infused ₹138.13 Crores into the company at a price of ₹237 per share, acquiring 58,28,290 equity shares. The robust anchor book reinforces the institutional trust in GNG's business prospects.

How to Check IPO Allotment Status

Investors can follow the steps below to check whether they have received allotment:

1. Visit the registrar's official website (Bigshare Services Pvt. Ltd).

2. Click on the IPO Allotment tab and select GNG Electronics Limited IPO.

3. Enter your application number, PAN, or DP Client ID.

4. Submit to view your allotment status.

The allotment will be made live on or around July 28, 2025.

Objectives of the IPO

The net proceeds from the IPO will be used for:

1. Prepayment/Repayment of borrowings:
   ₹3,200 Million will be utilized to repay in part or in full, certain loans taken by GNG Electronics and its material subsidiary Electronics Bazaar FZC.

2. General Corporate Purposes:
   Remaining funds will go toward working capital, brand development, and operational expansion.

These objectives are aligned with the company’s vision to scale operations and increase profitability.

Financial Performance Snapshot

GNG Electronics has posted consistent revenue and profit growth over the past three years, reflecting a strong financial foundation:

This data clearly shows robust growth in both top-line and bottom-line metrics.

Key Financial Ratios

• Pre-issue EPS (FY24): ₹7.09

• Post-issue EPS (FY24): ₹6.04

• Pre-issue P/E Ratio: 33.42x

• Post-issue P/E Ratio: 39.26x

• ROCE (FY24): 17.31%

• ROE (FY24): 30.40%

• RoNW: 30.40%

These ratios indicate that while the IPO is fully priced, the company has strong return metrics which justify the valuation.

Industry Outlook and Company’s Role

The refurbished electronics market is growing rapidly due to:

• Increased demand for affordable computing devices

• Rising environmental consciousness

• Government and enterprise focus on digital inclusion

GNG Electronics is uniquely positioned with its direct-to-consumer model, strong supply chain, and focus on quality assurance, making it a top choice in this niche yet expanding market.

Expert Recommendation

Given the healthy GMP, 14.37x subscription, and consistent financial growth, the GNG Electronics IPO is recommended for listing gains. Investors looking for short-term momentum and long-term exposure to the sustainable electronics domain may consider applying.

Final Thoughts

GNG Electronics is riding the wave of digital transformation by making technology more sustainable and affordable. The IPO presents an opportunity to invest in a company that is not only financially strong, but also committed to sustainable business practices.

With a promising listing expected on July 30, 2025, and strong investor demand, GNG Electronics Limited is poised to deliver rewarding results for IPO applicants.

Disclaimer: This review is for informational purposes only. It should not be construed as investment advice. Investors must consult their financial advisors before investing. Past performance is not indicative of future results. Investment in securities is subject to market risks.

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