Electronics Bazaar (GNG Electronics), a leading provider of refurbished IT products in India, has officially filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO). Electronics Bazaar IPO is aimed at raising approximately INR 825 crore, with a fresh issue of equity shares and an offer for sale (OFS) of up to 97,00,000 shares by existing shareholders.
Business Overview
Electronics Bazaar is a leading refurbisher of laptops, desktops, and ICT devices, with a strong presence in India, the USA, Europe, Africa, and the UAE, emphasizes sustainability through a repair-over-replacement approach to reduce its carbon footprint. As of Fiscal 2024, the company is India’s largest Microsoft Authorized refurbisher and serves as the IT asset disposal partner for the country’s second-largest software company by market capitalization.
Electronics Bazaar Offer Details
The IPO will consist of a fresh issue of equity shares aggregating up to INR 825 crore along with the OFS. The OFS includes significant shareholdings from key promoters:
- Sharad Khandelwal: Up to 35,000 shares
- Vidhi Sharad Khandelwal: Up to 35,000 shares
- Amiable Electronics: Up to 96,30,000 shares
Utilization of Proceeds
Electronics Bazaar plans to utilize the net proceeds from the IPO for several strategic initiatives:
- Prepayment and/or repayment, in full or in part, of all or a portion of certain outstanding borrowings availed by the company and its material subsidiary namely, Electronics Bazaar FZC
- Funding the working capital requirements of the company
Electronics Bazaar’s Competitive Edge
Electronics Bazaar is making waves in the refurbishment industry, carving out a niche where technology meets sustainability. At the heart of its operations lies a repair-over-replacement philosophy—a concept that flips the script on traditional IT asset management. This approach doesn’t just trim down the mountains of electronic waste that pile up each year; it also provides businesses across the globe with smarter, more cost-effective ways to handle their IT assets.
The company has earned its stripes as India’s largest Microsoft Authorized Refurbisher—a title that speaks volumes about its dedication to quality and ability to scale operations. But it’s not just about size. Electronics Bazaar thrives on partnerships with some of the biggest names in the corporate world, showcasing its expertise in IT asset disposal and refurbishment.
What sets the company apart is its knack for innovation. From advanced repair techniques to staying on top of global trends, Electronics Bazaar has a clear focus: adapting to what businesses need while keeping sustainability front and centre. It’s a balancing act and one the company has mastered.
Conclusion
As Electronics Bazaar prepares for its IPO under SEBI’s scrutiny, it stands poised to tap into India’s burgeoning demand for refurbished IT products. With a solid foundation built on experienced leadership and a comprehensive service offering tailored to meet diverse client needs, Electronics Bazaar’s public offering represents not only an opportunity for investors but also a significant milestone in the evolution of India’s refurbished products market. As this story unfolds, stakeholders will be keenly watching how GNG Electronics navigates the regulatory landscape while capitalizing on growth opportunities within this dynamic sector.
As of November 2024, the Indian primary market has seen a total of 77 IPOs. Out of these, 60 listings have achieved positive performance. However, there were challenges as well, with 17 IPOs experiencing negative returns. Notably, the average listing day return stands at an impressive 27.59% for IPOs, underscoring the potential for significant gains in this dynamic market. For more information related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.
