GNG Electronics IPO Day 3: Subscribed 35 Times So Far — Last Chance to Apply Today!

GNG Electronics, a company that refurbishes laptops and desktops, launched its IPO (Initial Public Offering) on Wednesday, July 23. The IPO closes today, Friday, July 25. So far, the IPO has been subscribed over 35 times and is expected to attract more investors by the end of the IPO.

GNG Electronics Subscription Details:

GNG Electronics IPO had received bids for 49.80 crore shares, far exceeding the 1.38 crore shares available. The IPO had been subscribed 35.90 times with non-institutional investors (NIIs) leading the demand by subscribing 95.66 times their allotted quota.

Retail investors booked their share 28.96 times. However, the Qualified Institutional Buyers (QIB) segment remained modestly subscribed at 2.34 times.

Grey Market Premium (GMP):

The current Grey Market Premium (GMP) for GNG Electronics is Rs 100, which means the stock is expected to list at around Rs 337 per share, which is Rs 100 higher than the IPO price of Rs 237. This indicates a possible gain of about 42.19% on listing.

The GMP has been rising recently, ranging between Rs 71 and Rs 105, which shows strong interest from investors. GMP reflects how much more people are willing to pay for the stock before it officially starts trading on the stock exchange.

GNG Electronics IPO Details:

The GNG Electronics IPO is priced between Rs 225 and Rs 237 per share. The IPO consists of two parts, a fresh issue of shares worth Rs 400 crore and an offer for sale (OFS) by the promoters, who are selling 25.5 lakh shares worth Rs 60.43 crore. This brings the total issue size to Rs 460.43 crore.

The IPO is being managed by Motilal Oswal Investment Advisors, IIFL Capital Services, and JM Financial, while Bigshare Services Pvt Ltd is handling the registrar duties.

The money raised from the fresh issue will be used to repay loans, support working capital needs, and cover other general business expenses.

Should You Apply?

Brokerage firms have a positive view of the GNG Electronics IPO. Arihant Capital, Canara Bank, and SBI Cap Securities have all given it an "Apply" rating, saying the company is profitable and has good growth potential. Bajaj Broking and Nirmal Bang have also advised investors to subscribe to the IPO.

"Global refurbished personal market is growing at a CAGR of 18.9% backed by sustainability and affordability. GNG has emerged as India's largest ICT refurbisher with a fast growing global footprint spanning 38 countries. The IPO looks fairly priced considering higher growth expected, repayment of loan from IPO proceeds and ROE of 30%. Hence, we recommend 'Subscribe' to the issue," said Nirmal Bang.

"GNG Electronics is a leading Indian company in the refurbished IT devices space and also offers related services globally. Financially, the company has shown strong growth, with revenue and profit rising from Rs 662.79 crore in FY23 to Rs 1,420.37 crore in FY25. Its average Return on Net Worth (RoNW) is 30.68%. The IPO is priced at a P/E of 39.17 based on FY25 projected earnings and 51.63 based on FY24 earnings," mentioned Bajaj Broking in tts report recommending subscribe for long term..

GNG Electronics IPO - Important Dates:

The GNG Electronics IPO closes today, July 25. The allotment of shares is expected to be finalized on Monday, July 28.

Refunds for unallocated shares will begin on Tuesday, July 29, and the shares will also be credited to investors' demat accounts on the same day.

The company is expected to list its shares on the stock exchanges (BSE and NSE) on Wednesday, July 30.

Anchor Investors:

A day before the IPO was opened to the public, GNG Electronics raised Rs 138 crore from large investors known as anchor investors on July 22.

Some of the major investors who participated include Goldman Sachs Fund, Motilal Oswal Mutual Fund, Edelweiss Mutual Fund, and Mirae Asset Mutual Fund. In total, 58,28,290 shares were allotted to 14 different funds at a price of Rs 237 per share.

About GNG Electronics:

Founded in 2006, GNG Electronics is India's largest refurbisher of laptops and desktops. The company operates under the brand "Electronics Bazaar" and specializes in repairing and restoring used electronic devices like laptops, desktops, tablets, servers, and smartphones.

GNG serves a wide range of customers-from individuals to schools and large enterprises-and exports to 38 countries including the US, UAE, UK, and several in Europe and Africa. The company has five refurbishment centers spread across India, the US, and the UAE.

In FY25, GNG refurbished over 5.9 lakh devices and reported a revenue of Rs 1,411 crore. Laptops accounted for more than 75% of its income. Its parent company is Amiable Electronics Pvt Ltd.

Disclaimer
The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.