GNG Electronics, the largest refurbisher of laptops and desktops in India and a key player in the refurbishment of ICT (Information and Communication Technology) devices is preparing to enter the primary market with plans to raise ₹825 crore. For this, the company submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI).
As outlined in the DRHP, the IPO includes a fresh issue of equity shares with a face value of ₹2 each, totalling up to ₹825 crore, as well as an offer for sale of up to 97 lakh shares with a face value of ₹2 each. The offer for sale consists of up to 35,000 equity shares by Sharad Khandelwal, up to 35,000 shares by Vidhi Sharad Khandelwal, and up to 96,30,000 shares by Amiable Electronics Private Limited.
Motilal Oswal Investment Advisors Limited, IIFL Capital Services Limited, and JM Financial are acting as the book-running lead managers for the issue, while Bigshare Services Private Limited is the registrar.
The company plans to use the net proceeds from the offering to partially or fully repay certain outstanding borrowings, both for itself and its subsidiary, Electronics Bazaar FZC. A portion of the funds will also be allocated to working capital needs and other general corporate purposes.
GNG Electronics is India’s largest refurbisher of laptops and desktops and one of the largest global refurbishers of ICT devices, with a significant presence in India, the USA, Europe, Africa, and the UAE, in terms of value.
The company operates under the brand “Electronics Bazaar” and is involved in the entire refurbishment value chain, from sourcing and refurbishing to sales, after-sale services, and warranty provisions.
As per the DRHP, GNG Electronics reported a consolidated net profit of ₹52.14 crore for FY24, up from ₹32.33 crore in FY23 and ₹21.71 crore in FY22. For the period ending September 30, 2024, the company posted a profit of ₹35.10 crore.
In FY22, the company’s revenue from operations was ₹520.50 crore, which grew to ₹659.54 crore in FY23, and ₹1,138.14 crore in FY24. For the half-year period ending September 30, 2024, the company generated ₹607.96 crore in revenue.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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