GNG Electronics IPO: Price band, lot size, key details; should you subscribe?

GNG Electronics IPO: The initial public offering (IPO) of GNG Electronics--largest refurbisher of laptops and desktops--will open on Wednesday (July 23) and investor can apply bid for the IPO until Friday, July 25. The company aims to raise Rs 460.4 crore and fixed the price band between Rs 225 and Rs 237. Should you subscribe to issue? Know what analysts at domestic brokerages recommend.

SBI Securities on GNG Electronics IPO

Analysts at SBI Securities have valued the company at a P/E multiple of 39.1x based on FY25 earnings at the upper end of the price band. According to the PSU brokerage, the industry outlook also remains promisingas the global and Indian refurbished PC markets projected to grow at CAGRs of 18.9 per cent and 31.3 per cent, respectively, over the next 5-6 years.

Furthermore, GNG plans to repay Rs 320 crore of debt by FY26, which is expected to reduce interest costs and enhance profitability. The company has no listed peers in India offering a like-for-like comparison. Due to these factors, SBI Securities has recommended to subscribe the IPO at the cut-off price.

Canara Bank Securities on GNG Electronics IPO

Another PSU brokerage, Canara Bank Securities said that GNG Electronics has built a competitive position in the high-growth refurbished ICT industry, backed by global OEM partnerships, B2B integrations, and an end-to-end business model. "Its first-mover advantage and full control of the refurbishment chain add to its scalability and sustainability," the brokerage said.

According to Canara Bank Securities, the IPO is priced at a P/E of 33.43x and a P/BV of 10.17x (FY25 earnings), which the brokerage believes is reasonable given GNG’s growth trajectory, sector leadership, and asset-light operations. The brokerage has to recommended apply for the IPO to well-informed investors with a medium to long-term investment horizon.

Ventura Securities on GNG Electronics IPO

Ventura Securities' analysts also has a 'subscribe' rating, citing the company’s focus on debt reduction, which is expected to improve margins going forward.

GNG Electronics IPO details

GNG Electronics IPO lot size: Investors can bid for a minimum of one lot, comprising 63 equity shares, and in multiples thereof. At the upper end of the price band, GNG Electronics is valued at a market capitalisation of over Rs 2,700 crore.

GNG Electronics IPO structure: The IPO consists of a fresh issue of equity shares worth Rs 400 crore and an offer for sale (OFS) of 25.5 lakh equity shares by promoters, amounting to Rs 60.43 crore at the upper price band.

GNG Electronics IPO proceeds utilisation: The net proceeds from the fresh issue will be used as follows:

• Repayment of outstanding borrowings
• Funding working capital needs
• General corporate purposes

GNG Electronics IPO allocation details

The IPO allocation is divided as follows:

• 50 per cent for Qualified Institutional Buyers (QIBs)
• 35 per cent  for Retail Individual Investors (RIIs)
• 15 per cent for Non-Institutional Investors (NIIs)

GNG Electronics IPO BRLMs: The book-running lead managers (BRLMs) to the issue are Motilal Oswal Investment Advisors, IIFL Capital Services, and JM Financial.

GNG Electronics IPO Registrar: The registrar to the issue is Bigshare Services.

GNG Electronics IPO Listing Date: The equity shares are expected to be listed on the stock exchanges on July 30.

About GNG Electronics

GNG Electronics, operating under the brand name “Electronics Bazaar”, is a leading player in the refurbished ICT (Information and Communication Technology) segment. The company has a vertically integrated business model covering the entire refurbishment value chain—from procurement and refurbishment to sales, after-sales service, and warranty support. Its product portfolio includes laptops, desktops, tablets, servers, premium smartphones, and mobile workstations.

(Disclaimer: The views/suggestions/recommendations expressed here in this article are solely by investment experts. Zee Business suggests its readers consult their investment advisers before making any financial decision.)