GNG Electronics IPO Subscription Begins: The buzz around the GNG Electronics IPO is picking pace. The public issue of the ICT device refurbishing firm has opened for subscription today, and investor interest is already surging with the GMP shooting up ovr 40%.
Let’s detail out all you need to know in this detailed yet easy-to-follow guide.
GNG Electronics IPO: Grey market premium – Off to flying start
The grey market seems bullish on GNG Electronics even before its official debut. According to market trackers, GNG Electronics shares are trading at a grey market premium (GMP) of Rs 105. Based on the upper end of the price band at Rs 237 per share, this implies a potential listing price of around Rs 342, an expected upside of 44.3%.
It should be noted that grey market prices are unofficial and can vary depending on market sentiment.
GNG Electronics IPO: Key details of the issue
The IPO consists of a fresh issue of Rs 400 crore and an offer for sale (OFS) of 25.5 lakh shares by promoters. The price band is set between Rs 225 and Rs 237 per share. The company aims to raise a total of Rs 460.44 crore at the upper end of the price band. The expected market capitalisation post-issue is Rs 2,702 crore.
The issue has a 50% reservation for QIBs, 15% for NIIs, and 35% for retail investors. The allotment is expected to be finalised on July 28, and the listing is tentatively set for July 30 on the NSE and BSE.
Motilal Oswal, JM Financial, IIFL Capital are the lead managers of this mainboard issue. Meanwhile, Bigshare Services is the registrar of the issue.
GNG Electronics IPO: Brokerage views
Brokerages have offered mixed opinions on the valuation and prospects of GNG Electronics.
Bajaj Broking – Positive on growth potential
“GEL is a key Indian player for refurbished IT devices. If we attribute FY25 annualised earnings, the asking price is at a P/E of 39.17. Based on FY24 earnings, the P/E stands at 51.63,” Bajaj Broking said in its note.
Deven Choksey Research – Neutral stance
“Available at 26.3x TTM EV/EBITDA, higher than the peer’s TTM EV/EBITDA of 22.8x. We expect sustained growth in financials led by consistent demand for quality refurbished electronic products and thus assign a ‘Neutral’ rating,” the brokerage stated.
Canara Bank Securities – Subscribe for a long term
“GNG Electronics Ltd. has established a competitive position in the refurbished ICT device industry, supported by global OEM partnerships and an integrated business model. The IPO is priced at a P/E of 33.43x and P/BV of 10.17x (FY25 earnings), which appears reasonable given the industry context. We recommend a ‘Subscribe’ rating for informed investors with a medium to long-term horizon.”
Arihant Capital Markets – Positive on growth
“The company is placed to capitalise on the growing refurbished electronics market. At the upper price band of Rs 237, the issue is priced at a P/E of 39.14x based on FY25 EPS of Rs 6.1. We have a ‘Subscribe’ rating for the issue,” Arihant noted.
About the company
Founded in 2006, GNG Electronics is a major player in refurbishing ICT devices like laptops and desktops. It operates under the “Electronics Bazaar” brand and serves both Indian and international clients.
With five refurbishment hubs across India, the UAE, and the US, the company follows an asset light, end to end model, from sourcing to refurbishing, selling, and after-sales service.