GNG Electronics IPO

About GNG Electronics IPO

GNG Electronics Ltd will launch its IPO on July 23, 2025 , which will comprise a fresh issue and an offer for sale. While the fresh issue size is aggregating up to ₹400 crores, the offer for sale consists of up to 2,550,000 equity shares of face value of ₹2 each, aggregating up to ₹60.44 crores.

GNG Electronics Limited is India's largest refurbisher of laptops and desktops and among the largest refurbishers of ICT devices overall, both globally and in India, with significant presence across India, USA, Europe, Africa and UAE, in terms of value, as of 31 March 2025 (Source: 1Lattice Report). They operate under the brand "Electronics Bazaar", with presence across the full refurbishment value chain, i.e., from sourcing to refurbishment to sales, to after-sale services and providing warranty. They solve customers' requirement of affordable, reliable and premium ICT devices which are as good as new devices, both functionally and aesthetically, and are backed by proven warranty.

Objectives of GNG Electronics IPO

The Net Proceeds of the Fresh Issue are proposed to be utilised in the following manner:

• Prepayment and/or repayment, in full or in part, of all or a portion of certain outstanding borrowings availed by the company and their material subsidiary, namely, Electronics Bazaar FZC.

• General corporate purposes.

Industry Outlook

The Indian consumer electronics market has experienced rapid growth in recent years, driven by rising disposable incomes, urbanisation, and increasing digital connectivity. The Indian consumer electronics market was valued at US$7,170 crores in FY25 and is expected to rise at a CAGR of 12.4% from FY25–30 to reach US$12,860 crores. Government initiatives like Digital India and Make in India, along with rapid urbanisation, boost tech adoption and local manufacturing. The e-commerce boom and improved internet access have also made electronics more accessible, accelerating market growth.

Company Information

GNG Electronics Ltd is India’s largest refurbisher of laptops and desktops and among the largest refurbishers of ICT Devices overall, both globally and in India, the company is India’s largest Microsoft Authorised Refurbisher, in terms of refurbishing capability, as of fiscal 2025 and are also the IT asset disposal partner for India’s second –largest software company, in terms of market capitalisation as of fiscal 2025.

Strengths of GNG Electronics IPO

• India’s largest refurbisher of laptops and desktops, and among the largest refurbishers of ICT devices overall, both globally and in India.
  

• Strong global supply chain, with an established sourcing base and a long tail of vendors as well as a wide customer base.
  

• Well-established refurbishing capabilities and state-of-the-art infrastructure, with a focus on quality.
  

• Well positioned to harness the global shift to sustainability and the growing focus on ESG.
  

• Experienced management team and qualified personnel with significant industry experience.
  

• Track record of profitability and consistent financial performance
  

Risks of GNG Electronics IPO

• As of fiscal 2025, fiscal 2024 and fiscal 2023, the company derived 75.59%, 67.87% and 79.97%, respectively of its operational revenue from laptop sales. The continued success of this segment is crucial for its business and growth prospects, and any decline in demand could adversely impact revenue and profitability.
  

• An increase in the prices of essential parts and materials may negatively impact the company's business and financial performance. Past price fluctuations have affected procurement, and similar volatility could continue to pose challenges in the future.
  

• A significant portion of the company's revenue comes from international markets, accounting for 75.53%, 57.97% and 50.53% of revenue for fiscal 2025, fiscal 2024 and fiscal 2023, respectively. Any challenges in managing or expanding operations in overseas markets could impact growth and have a material adverse effect on its business, operations, and financial condition.
  

• A significant portion of the company's revenue relies on its top 10 customers, contributing 46.59%, 55.77% and 44.14% of total revenue during fiscals 2025, 2024 and 2023 respectively. The loss of any of these key customers could adversely impact revenue and profitability.
  

• The company relies on its sales network for product distribution, and any disruption in this network could negatively impact its business and operational results.
  

• They have substantial indebtedness that requires significant cash flows to service and limits their ability to operate freely. Their debt servicing coverage ratio for Fiscal 2025, Fiscal 2024, and Fiscal 2023 was 0.25 times, 0.25 times, and 0.40 times, respectively.
  

Source: All the financial information for listed industry peer mentioned above is on a standalone basis and is sourced from the financial results for Fiscal 2025 of Newjaisa Technologies Limited.

Source for GNG Electronics Limited: Based on the Restated Consolidated Financial Information.

Notes for listed peer: i. The P/E ratio of Newjaisa Technologies Limited may not be meaningful due to a negative EPS in Fiscal 2025. ii. Return on net worth (RoNW) is computed as profit/ (loss) for the year attributable to Equity shareholders divided by net worth as at March 31, 2025. iii. NAV per equity share has been computed as the networth divided by the total number of shares outstanding, as at March 31, 2025.

Anchor Investor Bidding Date 22 July 2025

IPO Registrar and Book Running Lead Manager

Bigshare Services Private Limited is the registrar of the GNG Electronics Ltd IPO. The book-running lead managers are:

• Motilal Oswal Investment Advisors Limited
  
• IIFL Capital Services Limited (formerly known as IIFL Securities Limited)
  
• JM Financial Limited
  

Business Model

GNG Electronics Ltd is India’s largest refurbisher of laptops and desktops with a strong global presence across the USA, Europe, Africa, and UAE.

Company Growth Trajectory

The company's revenue from operations increased by 23.98% to ₹1,411.11 crores for fiscal 2025 from ₹1,138.14 crores for fiscal 2024, primarily due to (i) increase in revenue from sale of products to ₹1,391.58 crores for fiscal 2025 from ₹1,127.21 crores for fiscal 2024; (ii) revenue from sale of products outside India increased to ₹1,065.78 crores for fiscal 2025 from ₹659.75 crores for fiscal 2024, driven by geographical expansion in the USA and European Union; and (iii) increase in leasing income to ₹7.93 crores in fiscal 2025 from ₹0.36 crore in fiscal 2024.

Their other income increased by 63.55% to ₹0.93 crore for fiscal 2025 from ₹0.57 crore for fiscal 2024, primarily due to an increase in their interest on fixed deposits to ₹0.52 crore for fiscal 2025 from ₹0.27 crore for fiscal 2024, an increase in their export incentives to ₹0.16 crore for fiscal 2025 from ₹0.07 crore for fiscal 2024, and an increase in their other income to ₹0.06 crore for fiscal 2025 from ₹0.004 crore in fiscal 2024.

The company's profit after tax for the period increased by 31.98% to ₹69.03 crores for fiscal 2025 from ₹52.31 crores for fiscal 2024.

How to Check the Allotment Status of GNG Electronics IPO?

You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of Bigshare Services Private Limited. To check the status on the BSE website:

• Visit the BSE website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is GNG Electronics Ltd
• Enter your application number or PAN number
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

To check status on the website of Bigshare Services Private IPO:

• Visit the website of Link Intime Private Ltd
• Click on IPO allotment Status
• Choose the name of the company from ‘Select Company’ dropdown
• Enter any of these - PAN Number, Application Number, DP/Client ID, Account Number / IFSC
• Click on Submit to check the status

How to Apply for GNG Electronics Ltd?

Here are the steps to apply for GNG Electronics Ltd IPO:

• Step 1: Log in to your Kotak Neo Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.