Key information about GNG Electronics IPO
- IPO Period: 23 July 2025 to 25 July 2025
- Listing Date: 30 July 2025
- Price Band: ₹225 – ₹237 per share
- Lot Size: 63 shares (i.e. Minimum Investment ₹14,175)
- Issue Size: ₹460.43 crore (Fresh Issue ₹400 Cr + OFS ₹60.43 Cr)
- Category Quota: QIB – 50%, Retail – 35%, NII – 15%
Grey Market Premium (GMP) and Market Reaction
- Before the IPO, the GMP was ₹83–₹85, later it increased to ₹100–₹105.
- This shows that there is a lot of interest in the company in the market.
- On the first day, the IPO was subscribed 5.17 times. On the second day, it was oversubscribed by almost 27 times.
Analysis of the company’s financial condition
Company strengths
- India’s largest refurbished laptop seller – Market leadership in refurbished electronics, especially laptops.
- Presence in 38+ countries – Global presence, especially in UAE.
- OEM and Retail Partnerships – ITAD and buyback agreements with HP, Lenovo, and major retailers.
- Growth-oriented business model – ESG (Environmental, Social, Governance) based, which is future-oriented.
- Debt repayment through IPO – ₹320 Cr will be used to repay debt, thereby reducing the interest burden on the company.
- Large anchor investment – Participation of credible fund houses and institutional investors.
Risks and vulnerabilities
- Dependence on one product – 75% of total sales come from laptops alone, which is risky.
- Foreign Dependency – 75% of revenue comes from abroad, especially the UAE – Geo-political and foreign currency risk.
- Client and Supplier Concentration – Just 10 clients provide 46% of the company’s revenue, and 10 suppliers account for more than half of the inventory.
- Low Inventory Turnover – Inventory turnover is decreasing, which is impacting cash flow.
- High Debt and Low DSCR – Debt outstanding is large, some will remain after the IPO, and interest repayment capacity is limited.
- Related Party Transactions and Legal Cases – There are some sensitive business and legal risks.
Evaluation and expectations
- As per the IPO price band, the company’s PE ratio stands at around 39x, which is slightly higher than the industry average.
- If profits are healthy and debt reduces, then the PE will come down.
- According to GMP, the potential profit on the listing day is 35–44%.
Decisions according to investment strategy
Short-Term Traders
- If you are only looking for listing gain, there is potential for profit given the current GMP and oversubscription.
- However, be careful if market sentiment changes or QIB interest is low.
Medium/Long-Term Investors
- If you believe that the future of refurbished electronics is bright and the company can efficiently become debt-free, then you can keep a small to moderate allocation.
- The company has potential for growth, foreign presence and new market capture.
GNG Electronics IPO is a potential IPO — especially for short-term gains.
While the company’s positioning and growth rate are promising, it would be wrong to ignore the debt and dependency-based risks.
