GNG Electronics IPO 23rd July 2025

 

Company Overview

    Founded: 2006

   Headquarters: Mumbai, Maharashtra, India

   Brand: Operates under the Electronics Bazaar brand

GNG Electronics presents a compelling IPO backed by strong financial growth, a unique sustainable business model, and significant global reach. The company’s leadership in refurbished ICT devices combined with rising institutional and retail investor interest makes this IPO notable. However, investors should weigh sector concentration, debt levels, and operational risks as part of their evaluation

    GNG Electronics stands as India’s largest refurbisher of laptops and desktops and is recognized globally as a leading force in the refurbishment of Information and Communication Technology (ICT) devices. Driven by a strong commitment to sustainability, innovation, and digital inclusion, the company plays a crucial role in extending the lifespan of electronic products and reducing electronic waste.

With five cutting-edge refurbishment facilities located across India, the United States, and the United Arab Emirates, GNG Electronics employs advanced diagnostics, repair, and quality assurance systems to ensure each device meets rigorous international standards before being resold.

Catering to a wide range of clients from educational institutions and government bodies to corporations and individual consumers GNG Electronics delivers reliable, cost-effective, and environmentally responsible computing solutions. Its efforts contribute significantly to bridging the digital divide and advancing the circular economy by making technology more affordable and accessible.

As an industry pioneer, GNG Electronics continues to lead through investments in R&D, workforce development, and green initiatives solidifying its role at the forefront of the global movement toward sustainable technology.

Business Model & Operations

• End-to-End Refurbishment Solutions

    Company offers a comprehensive refurbishment ecosystem that spans the entire device lifecycle. From sourcing used or returned ICT equipment to carrying out certified refurbishment processes, the company ensures each product meets high-quality standards before being resold through both B2B and B2C channels. Complementing this, GNG provides reliable after-sales support and warranty coverage, ensuring long-term customer satisfaction and product reliability.

• Strategic Alliances and Device Buyback Programs

    GNG has established strategic partnerships with leading OEMs and retailers such as HP India, Lenovo India, and Vijay Sales. These collaborations power structured device buyback programs, encouraging consumers to return older devices in exchange for value. This initiative not only promotes responsible consumption but also strengthens GNG’s resale ecosystem—supporting sustainability while expanding access to premium refurbished devices.

• Integrated Value-Added Services

    In addition to its core refurbishment business, GNG Electronics delivers a range of value-added services designed to enhance customer experience and environmental responsibility.

1.   IT Asset Disposition (ITAD): Secure, certified disposal of outdated IT assets in compliance with environmental standards.
2.   E-waste Management: End-to-end solutions for efficient, regulation-compliant electronic waste handling.
3.  Doorstep Technical Support: On-site repair and maintenance services tailored for both individual and enterprise clients.
4.  Flexible Payment and Upgrade Options: Financing solutions, including EMIs and upgrade plans, making technology more accessible and affordable.

• Global Footprint and Skilled Workforce

    By FY25, GNG Electronics had expanded to over 3,265 touchpoints across 35–38 countries, reinforcing its position as a global player in sustainable technology. This growth is powered by a highly skilled team of over 1,190 professionals, including engineers, technicians, logistics experts, and customer support personnel all dedicated to delivering excellence at scale.

📊Financial Performance (FY25 vs FY24)

Metric	FY24 (₹ Cr)	FY25 (₹ Cr)	YoY % Growth
Revenue	1,138.1	1,411.1	24%
PAT	52.3	69.0–69.1	32%

    • Assets: ₹719.5 Cr (FY25) vs ₹585.8 Cr (FY24)

    • Borrowings: ₹446.9 Cr (FY25) vs ₹322.3 Cr (FY24)

    • ROE (Mar 2025):  30.4% (vs ~31.96% in Mar 2024)

    • Pre‑IPO P/E ratio:  33.4; Post‑IPO P/E: ~39.1 

🎯 IPO Details

   • Issue size: ₹460.43 Cr

        ◦ Fresh Issue: ₹400 Cr

        ◦ Offer for Sale (OFS): ₹60.43 Cr by promoterPrice Band: ₹225 – ₹237/share

• Lot Size: 63 shares (minimum investment ₹14,931 at the upper band)
• Investor Allocation: 50% QIB, 35% Retail, 15% NII
• Use of Proceeds: ₹320 Cr to repay debt

Timelines

            ◦ Anchor book opens: July 22

            ◦ Public subscription: July 23–25

            ◦ Allotment: July 28

            ◦ Refunds/Share Credit: July 29

            ◦ Listing: July 30 on BSE & NSE

Lead Managers: Motilal Oswal Investment Advisors, IIFL Capital Services, JM Financial

🔍 Strengths & Risks

Strengths:

• Market leader in refurbishing, strong global footprint

• Strategic partnerships with OEMs and retailers

• Sustainable, cost-effective offerings aligned with ESG goals

Risks:

• Product concentration: Over 75% of revenue from laptops—sensitive to demand swings

• Technological obsolescence: Rapid shifts in device tech can pose challenges

• Capital intensity: Operations are working‑capital heavy

• Leverage: Adjusted gearing ratio stood at 2.73x in FY24