GNG Electronics IPO opens with robust 44% GMP. Should you subscribe?

Synopsis

GNG Electronics launched its IPO aiming to raise Rs 460 crore through fresh issue and offer for sale, showing strong financials and investor interest with a 44% GMP. The company will use the proceeds to repay debt and for general corporate purposes. Brokerages recommend subscribing, citing GNG's scale, growth, and strategic positioning in the refurbished electronics market.

GNG Electronics kicked off its IPO today aiming to raise Rs 460 crore through a combination of fresh issue and offer for sale. Riding on strong financials and investor interest, the IPO is debuting with a notable grey market premium (GMP) of 44%, indicating a healthy appetite.

The issue comprises a fresh equity raise of Rs 400 crore and an offer for sale worth Rs 60.44 crore by existing shareholders. The IPO is priced in the range of Rs 225–237, translating to a P/E of 33.3x on FY25 earnings.

Ahead of the issue, the company raised Rs 138 crore from anchor investors on July 22, allocating over 58 lakh shares.

GNG Electronics is a prominent player in the refurbished ICT (Information and Communication Technology) device segment. The company operates under the brand “Electronics Bazaar” and offers end-to-end lifecycle solutions — from sourcing to refurbishment, distribution, after-sale service, and buyback programs.

Its clients include major retail and OEM brands such as Vijay Sales, HP, and Lenovo.

Financially, GNG has reported strong growth. Revenue rose 24% year-on-year to Rs 1,420 crore in FY25, while profit after tax jumped 32% to Rs 69 crore.

Proceeds from the issue will be primarily used to repay outstanding borrowings of the company and its UAE-based subsidiary, Electronics Bazaar FZC, with Rs 320 crore allocated for this purpose. The balance will go toward general corporate purposes.

Motilal Oswal is the sole book-running lead manager and Bigshare Services is the registrar.

With a sharp rise in digital adoption and demand for cost-effective computing devices, GNG Electronics is looking to scale up its operations and reinforce its leadership in the growing refurbished electronics market.

Should you subscribe?
SBI Securities and Canara Bank Securities have both given it a "Subscribe" rating, citing scale, growth, and strategic positioning.

"GNG operates in a fragmented but fast-formalising market. With operations in 38 countries, refurbishing over 5.9 lakh devices in FY25, and a 46% revenue CAGR over FY23–FY25, the company is well-poised to benefit from affordability-driven demand and ESG tailwinds," the brokerages said.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)

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