GNG Electronics IPO: NIIs 171x bidding takes subscription to 62 times; GMP holds ground

The initial public offering (IPO) of GNG Electronics continued to see a bumper response during the third and final day of the bidding process from all the categories of the investors. The issue was overall booked more than 9 times on the first day of the issue and ended day two with nearly 28 times subscription.

GNG Electronics, a prominent player in the electronics refurbishing sector, has set the price band between Rs 225 and Rs 237 per share. Investors can apply for a minimum lot size of 63 shares, with the total issue aiming to raise Rs 460.43 crore. The IPO consists of a fresh share sale worth Rs 400 crore and an offer-for-sale (OFS) of up to 25.50 lakh shares, valued at Rs 60.43 crore.

According to the data, the investors made bids for 87,74,35,650 equity shares, or 61.84 times, compared to the 1,41,88,644 equity shares offered for the subscription by 12.20 pm on Friday, July 25, 2025. The three day bidding for the issue, which kicked off on Wednesday, July 23, shall conclude today.

The allocation for non-institutional investors (NIIs) was subscribed a solid 171.09 times, while the portion reserved for retail investors saw a subscription of 36.67 times. However, the quota set aside for qualified institutional bidders (QIBs) saw bids for 23.57 times as of the same time.

Mumbai-based GNG Electronics, incorporated in 2006, operates under the ‘Electronics Bazaar’ brand, providing refurbishing services for laptops, desktops, and ICT devices globally. The company has a robust market presence across India, the USA, Europe, Africa, and the UAE. Known for its end-to-end services from sourcing to after-sales support, GNG Electronics reported a net profit of Rs 69.03 crore on a revenue of Rs 1,420.37 crore for the fiscal year ending March 2025.

Global refurbished personal market is growing at a CAGR of 18.9 per cent backed by sustainability and affordability. GNG has emerged as India’s largest ICT refurbisher with a fast growing global footprint spanning 38 countries. Revenues and Ebitda has grown at a CAGR of 46 per cent and 59.5 per cent during FY23-25, Nirmal Bang Securities.

“With strong partnerships of 557 procurement partners and a broad portfolio of 5840 SKUs, GNG appears structurally positioned to capture long term value creation from both ESG-led and affordability driven global IT demand. The issue is priced at a P/E of 39 times FY25 EPS which looks fairly priced considering higher growth expected, repayment of loan from IPO proceeds,” it said with a ‘subscribe’ rating.

The IPO seeks to bolster the company’s market standing and expand its operations further. The fresh issue proceeds are intended to fund working capital requirements, repay outstanding borrowings, and support general corporate purposes. With no listed peers, GNG Electronics presents a unique investment opportunity in the refurbishing industry.

Revenue from Operations increased at a CAGR of 46.3 per cent from FY23-FY25, with RoE was strong at 30.4 per cent in FY25, said Ventura Securities. “We recommend ‘subscribe’ for GNG Electronics as we expect margins to improve with debt reduction going ahead,” it added.

As of the IPO pricing, GNG Electronics commands a market capitalisation of approximately Rs 2,700 crore. The company’s strong market presence and financial credentials have attracted considerable interest from investors, reflected in the stable grey market premium (GMP) of Rs 100-105, indicating potential listing gains of 42-45 per cent.

Ahead of the IPO, GNG Electronics successfully raised Rs 138.13 crore through an anchor book, allocating 58.28 lakh shares at Rs 237 each. This move has enhanced investor confidence, contributing to the positive outlook surrounding the IPO. Listing is expected on July 30, managed by Motilal Oswal Investment Advisors, IIFL Capital Services, and JM Financial.