GNG Electronics IPO gets Sebi nod; seeks to raise ₹450-cr via fresh issue

GNG Electronics IPO comprises a fresh issue of equity shares aggregating up to 450 crore, along with an OFS of up to 5.1 million equity shares

Upcoming IPO: GNG Electronics, India's largest refurbisher of laptops and desktops, has received approval from the market regulator Securities and Exchange Board of India (Sebi) to launch its initial public offering (IPO).

 

According to the draft red herring prospectus (RHP), the mainline public issue comprises a fresh issue of equity shares aggregating up to 450 crore, along with an offer for sale (OFS) of up to 5.1 million equity shares with a face value of 2 each. 

 

The offer for sale comprises up to 35,000 shares each by promoters Sharad Khandelwal and Vidhi Sharad Khandelwal and up to 5.03 million equity shares by Amiable Electronics.

 

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Bigshare Services is the registrar of the issue. Motilal Oswal Investment Advisors, IIFL Capital and JM Financial are the book-running lead managers. 

 

According to the DRHP, the company plans to use the net issue proceeds to prepay or repay certain outstanding borrowings availed by itself and its material subsidiary, Electronics Bazaar FZC. The remaining funds will be used for general corporate purposes. 

About GNG Electronics

GNG Electronics is a refurbisher of laptops and desktops. The company has a strong presence across India, the USA, Europe, Africa, and UAE. GNG is India’s largest Microsoft Authorised Refurbisher, in terms of refurbishing capability, as of Fiscal 2024, according to the ILattice report. 

 

The company operates under the brand “Electronics Bazaar”, with a presence across the full refurbishment value chain i.e. from sourcing to refurbishment to sales to after-sale services and providing a warranty.  It has five refurbishing facilities including one in Navi Mumbai, Maharashtra, India, one facility in Dallas, Texas, USA and three facilities in Sharjah, UAE.

 

In the six-month period ended September 30, 2024, the company posted revenue from operations of ₹607.9 crore and PAT of ₹35.2 crore. In the financial year 2023-24 (FY24), GNG Electronics reported revenue from operations of ₹1,138.1 crore, up 72 per cent from ₹659.5 crore in the previous fiscal. It reported a PAT of ₹52.3 crore in FY24 compared to ₹32.4 crore in FY23.

In FY24, the company's Earnings before interest, tax, depreciation and amortisation (Ebitda) stood at ₹84.9 crore, up 70 per cent from ₹50 crore in the previous financial year.