In a market leaning toward sustainability and affordability, GNG Electronics stands at the intersection of demand for low-cost computing and environmental consciousness. As the company prepares to launch its IPO between 23–25 July 2025, it’s important to examine more than just the topline—what powers GNG’s engine, and is it worth your investment?
🏢 Understanding the Business: Repair over Replacement
GNG Electronics operates on a circular economy model, focusing on refurbishing ICT devices (laptops, desktops, tablets) rather than scrapping them. This not only enhances affordability but also aligns with rising global ESG norms.
It follows a fully integrated “reverse supply chain” business model:
🔁 End-to-End Operations
| Function | Description |
|---|---|
| Sourcing | Used ICT assets from corporates (ITAD), government auctions, global refurbishers (e.g., Iron Mountain, Tata Capital). |
| Logistics & Warehousing | Warranties up to 1 year, support centres, reverse logistics. |
| Refurbishing | Repairing, replacing parts, OS installation (Microsoft MAR), cosmetic grading. |
| Certification | QC checks (70+ parameters), certified via proprietary refurb process. |
| Sales & Distribution | D2C (via electronicsbazaar.com), B2B exports to 38 countries, wholesale partnerships. |
| After-Sales | Warranties up to 1 year, support centres, and reverse logistics. |
💰 GNG Electronics Revenue Streams & Segmental Breakdown
GNG Electronics business model relies on multiple revenue channels:
🔸 1. B2C Sales (D2C Website + Marketplace)
- Sold through ElectronicsBazaar.com, Amazon, Flipkart.
- Targeted at students, budget buyers, and digital-first users.
- ~4.64% of revenue from operation (FY25).
🔸 2. B2B Exports & Institutional Sales
- Bulk sales to distributors, NGOs, schools, SMEs.
- Includes exports to 38+ countries (Africa, GCC, Latin America).
- ~95.36% of FY25 revenue from operations.
🔸 3. IT Asset Disposition (ITAD) Services
- Procurement from companies retiring hardware (like Microsoft).
- Earns margin on resale + service fees.
- ~15% of revenue.
🔸 4. Microsoft Authorised Refurbisher (MAR) Program
- Exclusive license to sell pre-installed genuine Windows OS on refurbished systems.
- Drives brand trust and price premium.
- ~10% of margin contribution.
🔍 GNG handles over 1.1 million devices annually, with 70% sourced via ITAD and 30% via international partners.
🌍 Global Footprint & Capacity
- Refurbishment Facilities:
- Navi Mumbai (India) – HQ + largest volume.
- Sharjah (UAE) – GCC and Africa exports.
- Dallas (USA) – North America sourcing + export to LATAM.
- Combined Capacity: ~1.4 million units/year across 58,127 sq. ft.
- Touchpoints: 4,154 across 38 countries.
🌐 Refurbished ICT Market
The global refurbished ICT market is on an upward curve. From USD 9.7 billion in 2018, it has grown to USD 14.4 billion in 2023, and is expected to more than double to USD 38.3 billion by 2028—registering a robust 22% CAGR, according to the 1Lattice Report. Driving this shift are affordability pressures, the rapid obsolescence, and the need for digital inclusion across emerging economies.
India mirrors this trend. With a refurbished PC market estimated at INR 1,700 crore in 2023 and projected to reach INR 7,000 crore by 2028 (32% CAGR), the country stands at an inflexion point. Several structural forces are converging. The government’s Digital India push, especially in education and rural digitization, is expanding device demand beyond metros. At the same time, small businesses, startups, and gig workers are seeking value-oriented tech, boosting the adoption of pre-owned systems.
Large corporates are also turning to certified refurbishers to dispose of outdated IT assets, in compliance with tightening e-waste norms. On the consumer side, trust is growing. Platforms now offer warranty-backed refurbished devices, return policies, and EMI options, reducing the perceived risk of secondhand tech.
With India’s PC penetration still among the lowest globally (~15 per 100 people), the growth headroom is massive. As refurbished technology transitions from a fallback option to a conscious choice, organised players stand to benefit.
GNG Electronics, with its multi-country sourcing, in-house refurbishing, Microsoft MAR authorisation, and pan-India retail network, is strategically positioned to lead this evolution. The tailwinds aren’t just favourable—they’re accelerating.
🧾 GNG Electronics Financial Performance
| Metric | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Revenue | 520.5 | 659.5 | 1,138.1 | 1,411.1 |
| Net Profit | 21.8 | 32.4 | 52.3 | 69.03 |
| EBITDA | 34.67 | 50.04 | 84.90 | 126.14 |
| ROCE (%) | 18.06 | 17.91 | 16.72 | 17.31 |
| EBITDA Margin (%) | 6.66 | 7.59 | 7.46 | 8.94% |
🔍 Peer Comparison: How Does GNG Stack Up?
| Company | Revenue (INR Cr) | EPS (INR) | ROCE (%) | Market Presence | PE Ratio* |
|---|---|---|---|---|---|
| GNG Electronics | 1,411.1 | 7.09 | 17.31% | Global (38+ countries) | 6.06 |
| Newjaisa Technologies | 65.6 | (0.32) | (0.44)% | India (online only) | NA |
Verdict: GNG is significantly ahead in revenue scale, profitability, global presence, and enterprise relationships. If priced between 15X to 30X PE, it may offer attractive valuation upside.
📦 GNG Electronics IPO Offer Details
| Field | Details |
|---|---|
| IPO Window | 23–25 July 2025 |
| Fresh Issue | INR 450 Cr |
| Offer for Sale | 51,00,000 shares |
| Retail Quota | 35% |
| Use of Proceeds | INR 320 Cr for debt repayment, rest for expansion |
| Listing On | NSE & BSE |
✅ Strengths
- Market Leadership: India’s largest refurbisher of laptops and desktops and among the top global refurbishers of ICT devices, with presence across 38 countries.
- Strong Global Operations: Five refurbishment facilities across India, UAE, and USA; strategically located to optimise delivery, reduce freight costs, and efficiently serve regional demand.
- High Volume Capability: Refurbished 5,90,787 ICT devices in FY25 with no inventory write-offs or bad debts, indicating efficient operations and strong demand.
- Affordable & High-Quality Products: Refurbished laptops priced at one-third of new ones, with 1–3 years warranty; functionally and aesthetically equivalent to new devices.
- Authorised Refurbishment Partner: Certified refurbisher for HP and Lenovo (top global brands); India’s largest authorised refurbisher for Microsoft as of FY25.
- Strong Procurement & Sales Network: 4,154 customer touchpoints and 447 procurement partners across 38 countries as of 31 March 2025, enabling wide product availability and stable sourcing.
- Experienced Management Team: Led by founder Sharad Khandelwal with 29 years of ICT experience; supported by professionals across finance, operations, sales, and technology.
- Diversified Revenue Base: FY25 revenue split: INR 1,411.1 crore, international (75.53%), domestic (24.47%); strong presence across North America, Europe, the Middle East, and India.
⚠️ Risks
- Heavy reliance on laptop sales: FY22 – 89.12%, FY23 – 79.97%, FY24 – 67.87%, FY25 – 75.59%. Any decline in demand may hurt revenue.
- Material cost forms 88–92% of total expenses. Import reliance rose: FY22 – 28.58%, FY24 – 49.09%, mainly from UAE and USA. Price hikes may affect margins.
- Revenue from outside India grew: FY22 – 40.20%, FY23 – 50.53%, FY24 – 57.97%, FY25 – 75.53%. Inability to manage overseas business may impact growth.
- Revenue from subsidiary EB FZC: FY22 – 40%, FY23 – 50.30%, FY24 – 49.60%, FY25 – 66.66%. Any loss or change in control may affect financials.
- Operations concentrated in India, Middle East, USA (combined >97% in FY25). Economic, political, or regulatory issues in these regions may severely impact business stability.
Final Words
GNG Electronics combines scalable infrastructure, global linkages, and growing profitability in a market poised for exponential growth. Its focus on B2B exports and institutional ITAD procurement offers a defensible moat—something missing in most Indian refurbished players.
📈 If the IPO is priced at a reasonable valuation (20–30x PE), this is a compelling opportunity for investors seeking exposure to circular economy themes, tech affordability, and export-driven growth.
For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.