Mumbai-based GNG Electronics, India’s largest refurbisher of laptops and desktops under the brand ‘Electronics Bazaar,’ has refiled its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for a public offering aggregating up to INR 450 crore. As the company is reworking its previous IPO plans, the total issue size has been reduced by almost 50% and is a more focused and strategic approach, given the current market conditions.
The IPO comprises a fresh issue of equity shares aggregating up to INR 450 crore and an offer for sale (OFS) of up to 51 lakh shares. Promoters Sharad Khandelwal and Vidhi Sharad Khandelwal cumulatively hold 18.5% of the total equity and they will offload 70,000 shares, divided equally. The bulk of the OFS will come from Amiable Electronics, which currently holds a majority 57.29% stake and will offload up to 50.3 lakh shares.
Electronics Bazaar IPO – Financial Snapshot
GNG Electronics has demonstrated robust financial performance over recent fiscal years, showcasing the company’s ability to scale operations and drive profitability:
- FY22: Revenue at INR 520.5 crore and Net Profit of INR 21.8 crore.
- FY23: Revenue climbed to INR 659.5 crore, with a Net Profit of INR 32.4 crore.
- FY24: Revenue surged to INR 1,138.1 crore, accompanied by a net profit of INR 52.3 crore.
- H1 FY25: The company reported a revenue of INR 608 crore and a net profit of INR 35.2 crore, underlining sustained momentum.
Laptops contribute to a significant portion of GNG’s revenue – 68% in FY24. Geographically international markets contributed INR 659.75 crore in sales vs INR 478.39 crore from domestic operations in FY24.
GNG Electronics IPO – Operational Strength and Market Leadership
GNG Electronics operates across India, the USA, Europe, Africa, and the UAE, making it one of the largest global refurbishers of ICT devices. Its unique repair-over-replacement model not only ensures cost benefits but also supports sustainability objectives. The company is India’s largest Microsoft Authorised Refurbisher and a certified refurbishment partner for industry giants Lenovo and HP. With a strong procurement and sales network spanning 35 countries and 3,265 customer touchpoints, GNG sources from 447 global procurement partners, including well-known names like Iron Mountain, Apto Solutions Inc., and Tata Capital.
GNG’s product portfolio includes laptops, desktops, tablets, servers, premium smartphones, mobile workstations, and accessories. Its refurbished products are priced significantly lower than new devices, with laptops offered at one-third the price of new models.
Electronics Bazaar IPO – Utilization of Proceeds and Debt Reduction Focus
The company plans to utilize INR 320 crore from the net proceeds for partial or complete repayment of certain outstanding borrowings, including loans availed by its material subsidiary, Electronics Bazaar FZC. The remainder will be allocated towards general corporate purposes.
As of September 2024, GNG Electronics’ total borrowings stood at around INR 500 crore. This debt reduction initiative will strengthen the balance sheet and increase operational flexibility.
GNG Electronics IPO – Details and Key Advisors
IPO will have a face value of INR 2 per equity share with a retail investor reservation of 35%. Motilal Oswal Investment Advisors, IIFL Capital Services and JM Financial are the book-running lead managers. Bigshare Services is the registrar to the issue.
Conclusion
The refiled DRHP by GNG Electronics is a strategic recalibration to focus on balance sheet strengthening and leverage its strong market position. With the refurbished electronics market in India expected to grow at 33% CAGR to reach USD 3.3 billion by FY29, GNG Electronics is well-placed to capitalize on the opportunities driven by its global network, brand partnerships, and commitment to quality and sustainability.
In the first two months of 2025, a total of 10 Mainboard IPOs were listed in the Indian markets. These IPOs cumulatively raised INR 15,983.05 crore. Out of these, 3 IPOs delivered negative returns. The average listing returns for the last two months stand at 17.53%. It is quite low compared to 29.15% for the IPOs listed in November and December 2024. For more details related to IPO GMP, and Live Subscription stay tuned to IPO Central.