The Indian IPO market continues to attract investor interest, and the upcoming GNG Electronics IPO is one of the most anticipated public issues in 2025. Known for its pioneering work in refurbished electronics, GNG Electronics is entering the capital markets with a robust offer. The IPO is already creating a buzz in the grey market, with a noticeable GMP (Grey Market Premium), signaling strong investor sentiment.
In this blog, we will explore the GNG Electronics IPO in detail — from company overview, financials, IPO structure, GMP trends, and expert insights to whether investors should consider subscribing.
📌 About GNG Electronics
GNG Electronics Limited, established in 2006, is a global player in the refurbished electronics market. Operating under the brand name “Electronics Bazaar”, the company is engaged in the refurbishment, distribution, and sale of laptops, desktops, and IT equipment.
With refurbishing units in India, USA (Dallas), UAE (Sharjah), and warehousing hubs in Europe and Africa, GNG Electronics is one of India’s few companies with such a global scale in the refurbished tech domain.
Their business model includes:
- B2B & B2C online sales through ElectronicsBazaar.com
- Retail presence through a wide channel partner network
- Certified refurbishment of laptops from top brands (HP, Dell, Lenovo, Apple, etc.)
This end-to-end control gives GNG a strong competitive edge in quality assurance and pricing.
💰 GNG Electronics IPO: Issue Details
| Particulars | Details |
|---|---|
| IPO Size | ₹460.44 crore |
| Fresh Issue | ₹400 crore (approx. 1.69 crore shares) |
| Offer for Sale (OFS) | ₹60.44 crore (25.5 lakh shares) |
| Price Band | To be announced |
| Lot Size | To be announced |
| Face Value | ₹10 per share |
| Listing Exchanges | BSE & NSE |
| Lead Managers | Aryaman Financial Services Limited |
| Registrar | Bigshare Services Pvt. Ltd. |
The funds raised through the fresh issue will be used for:
- Setting up a new automated refurbishment facility in Noida
- Expansion of overseas business operations
- Working capital requirements
- General corporate purposes
🔍 Grey Market Premium (GMP) Trends
The Grey Market Premium (GMP) is often seen as a proxy for investor sentiment before the listing of an IPO. While the official IPO price band has not been released yet, market reports indicate an active grey market premium of ₹25–₹30 per share (as of July 21, 2025).
This suggests:
- Strong demand from HNIs and retail investors
- High listing gain expectations (estimated 25–30% over issue price)
- Limited public float due to substantial anchor investor interest
Disclaimer: GMP is unofficial and not regulated by SEBI. It may change drastically based on market conditions.
📈 Company Financials Snapshot
| Year | Revenue (₹ Cr) | PAT (₹ Cr) | EBITDA Margin |
|---|---|---|---|
| FY 2023 | ₹320 | ₹27 | 13.2% |
| FY 2022 | ₹210 | ₹15 | 11.8% |
| FY 2021 | ₹145 | ₹7.6 | 9.3% |
Highlights:
- Consistent revenue and profit growth
- Improvement in margins due to automation and international scale
- Zero long-term debt on books
The growth in PAT (Profit After Tax) over the last three years indicates strong operational efficiency and increasing demand for refurbished IT products globally.
🌐 Industry Overview: Refurbished Electronics
The global refurbished electronics market is expected to grow at a CAGR of 11.2% over the next five years. Key factors driving this demand include:
- Rising cost of new devices
- Growing e-waste awareness
- Increased adoption of sustainable consumption models
- Bulk demand from schools, offices, and government programs
In India, this segment is still in its infancy, offering massive growth potential. GNG’s early mover advantage and robust tech infrastructure put it in a strong position to capitalize on this shift.
🧑💼 Promoters and Management
The IPO’s OFS component includes partial offloading of shares by the promoters. The promoters include:
- Mr. Prashant Kumar Gupta (CMD) – With over 20 years of experience in IT distribution and refurbishing
- Mrs. Anjali Gupta (Director) – Operational lead for retail business strategy
The management team is lauded for building a vertically integrated supply chain, which is rare in the refurbished electronics industry.
📊 IPO Valuation: Reasonable or Expensive?
While the exact price band is yet to be declared, analysts expect a P/E multiple of 18–20x, which is considered fair given:
- Asset-light, tech-driven business model
- Proven international revenue streams
- Future scalability due to rising e-waste and demand
If the IPO is priced conservatively, the GMP trends suggest a good opportunity for listing gains and long-term holding.
🧐 Should You Subscribe?
✅ Pros:
- Industry tailwinds and first-mover advantage
- Impressive financial growth and profitability
- Global presence with local distribution capabilities
- High demand in grey market
- Asset-light and eco-conscious business model
❌ Cons:
- Grey market can be volatile before listing
- Heavily reliant on international markets (currency risk)
- Refurbished electronics still face stigma in tier-2 & rural India
🧠 Expert Views
Market experts and brokerage houses are optimistic. Here’s what they say:
“GNG Electronics brings a unique value proposition in the IPO market. With increasing digitalization and sustainability goals, demand for refurbished tech is surging. The IPO is attractively sized and could offer decent listing gains.”
– Deepak Shah, Angel One
“We expect oversubscription across all investor categories. GMP action confirms bullish mood. This could be a sleeper hit like Ideaforge or Sah Polymers.”
– Rajat Jain, IPO Watch Analyst
📅 Expected Timeline (Tentative)
| Event | Tentative Date |
|---|---|
| IPO Open Date | August 5, 2025 |
| IPO Close Date | August 7, 2025 |
| Allotment Date | August 8–9, 2025 |
| Listing Date | August 13, 2025 |
Final dates will be updated post RHP release.
🧾 Final Verdict
The GNG Electronics IPO is shaping up to be a promising offer — especially for those who believe in the circular economy and digital inclusion. Strong GMP, solid fundamentals, and a futuristic business model make this IPO worth considering.
If you’re a retail investor looking for listing gains or long-term value in the tech space, GNG Electronics might be your next opportunity.
Stay tuned for price band updates and final DRHP review.
Disclaimer: This blog is for informational purposes only and should not be considered financial advice. Always consult your financial advisor before investing.
