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About the Company
GNG Electronics Ltd was founded in 2006 and offers refurbishing services for electronic equipment like laptops, desktops, and Information & Communication Technology (ICT) devices.
Written By Bani Thakkar
IPO
ABOUT THE COMPANY
It has presence in India, the US, Europe, UAE, and in Africa. It also offers sales and after-sales services as part of its OEM packages, as well as tailored buy-back services. It has tie-ups with large format stores like Vijay Sales, HP India, Lenovo Global etc.
The fresh funds will be used for repayment of loans of the parent and its material subsidiary, Electronics Bazaar FZC. The promoters of GNG Electronics Ltd are Sharad Khandelwal, Vidhi Khandelwal, Kay-Kay Overseas Corp, and Amiable Electronics Private Ltd. The IPO will be lead managed by Motilal Oswal, IIFL Capital, and JM Financial; while Bigshare Services Private Ltd will be the IPO registrar. The company is headquartered in Mumbai.
HIGHLIGHTS OF THE IPO ISSUE
Here are the key highlights of the public issue of GNG Electronics Ltd.
- The IPO of will be open from July 23rd, 2025 to July 25th, 2025. It has a face value of ₹2 per share and the IPO price band has been set in the range of ₹225 to ₹237 per share.
- The IPO of GNG Electronics Ltd will be a combination of a fresh issue of shares and offer for sale (OFS) component.
- The fresh issue portion of the IPO comprises the issue of 1,68,77,637 shares (168.78 lakh shares), which at the upper price band of ₹237 per share translates into ₹400.00 crore.
- The offer for sale (OFS) portion of 25,50,000 shares (25.50 lakh shares), which at the upper price band of ₹237 per share translates into OFS size of ₹60.44 crore.
- The overall IPO will comprise of a fresh issue and OFS of 1,94,27,637 shares (194.28 lakh shares) worth ₹460.44 crore at the upper band price of ₹237 per share.
The IPO of GNG Electronics Ltd will be listed on the NSE and the BSE on the IPO mainboard.
KEY DATES, INVESTOR ALLOCATION, AND LOT SIZES
Here are the key dates pertaining to the IPO of GNG Electronics Ltd
| Event | Tentative Date |
| IPO Open Date | 23rd July 2025 |
| IPO Close Date | 25th July 2025 |
| Basis of Allotment | 28th July 2025 |
| Initiation of Refunds to non-allottees | 29th July 2025 |
| Credit of Shares to Demat | 29th July 2025 |
| Listing Date on NSE and BSE | 30th July 2025 |
Data Source: Company RHP
Investors can apply either through their existing trading account or the ASBA application can be directly logged through the internet banking account. This can only be done through the authorized list of self-certified syndicate banks (SCSB).
The table below captures the gist of the allocation to various categories.
| Category of Investors | Allocation of shares under IPO |
| Reservation for Employees | There is no IPO reservation for employees |
| Anchor Allocation | 58,28,290 shares (43.61% of the total IPO offer size) |
| QIB Shares Offered | 40,24,755 shares (30.62% of the total IPO offer size) |
| NII (HNI) Shares Offered | 30,49,167 shares (15.31% of the total IPO offer size) |
| Retail Shares Offered | 71,14,722 shares (10.21% of the total IPO offer size) |
| Total Shares Offered | 2,00,16,934 shares (100.00% of total IPO offer size) |
Data Source: Security Parameters Filing (NSE)
The anchor portion, is carved out of the QIB portion and the QIB portion available in the IPO offer has been reduced proportionately. Please note that the above shares are final and may differ marginally from the original announcement. Here is a quick look at the lot sizes applicable for the IPO of GNG Electronics Ltd for various categories of investors.
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 63 | ₹ 14,931 |
| Retail (Max) | 13 | 819 | ₹ 1,94,103 |
| S-HNI (Min) | 14 | 882 | ₹ 2,09,034 |
| S-HNI (Max) | 66 | 4,158 | ₹ 9,85,446 |
| B-HNI (Min) | 67 | 4,221 | ₹ 10,00,377 |
It may be noted here that for the B-HNI category and for the QIB (qualified institutional buyer) category, there are no upper limits applicable.
FINANCIAL HIGHLIGHTS OF GNG ELECTRONICS LTD
The table captures the key financials of GNG Electronics Ltd for last 3 financial years.
| Particulars | FY25 | FY24 | FY23 |
| Net Revenues (₹ in crore) | 1,411.11 | 1,138.14 | 659.54 |
| Sales Growth (%) | 23.98% | 72.56% | |
| Profit after Tax (₹ in crore) | 68.83 | 52.14 | 32.33 |
| PAT Margins (%) | 4.88% | 4.58% | 4.90% |
| Total Equity (₹ in crore) | 226.46 | 163.14 | 111.60 |
| Total Assets (₹ in crore) | 719.46 | 585.82 | 285.50 |
| Return on Equity (%) | 30.40% | 31.96% | 28.97% |
| Return on Assets (%) | 9.57% | 8.90% | 11.32% |
| Asset Turnover Ratio (X) | 1.96 | 1.94 | 2.31 |
| Earnings per share (₹) | 7.09 | 5.37 | 3.33 |
Data Source: Company RHP filed with SEBI (FY refers to Apr-Mar period)
The company has seen steady growth in top line and bottom line. The PAT margins, as a result have been relatively stable over the last 3 years. PAT margins of around 5% are fairly healthy for a pure electronics retail business. The company has also reported ROE of around 30% on an average in the last 3 years, and an asset turnover ratio of closer to 2X, shows prudent utilization of assets and conversion into revenues.
VALUATION METRICS OF THE GNG ELECTRONICS LTD IPO
If one considers the latest year EPS of ₹7.09 per share, the P/E ratio works out to 33.4X on the IPO price of ₹237 per share. While P/E comparisons may be slightly more complicated due to absence of too many direct peers, the strong ROE averaging 30%, combined with the steady growth in top line and bottom line, does make a case to justify the valuations.
GNG Electronics Ltd also has some intangibles favouring them. It has several key OEM tie-ups on the supply side and has an international presence on the demand side. Also, with handling electronics waste prudently taking precedence, the strategy of the company should fit better into ESG. Investors can look at this IPO as a participation in the electronics retail play as well as a futuristic play on ESG.