GNG Electronics Files DRHP for ₹450 Crore IPO with SEBI

GNG Electronics Ltd, a Mumbai-based refurbishing company, has taken a significant step towards its public listing by filing preliminary papers with the Securities and Exchange Board of India (SEBI). The company plans to raise ₹450 crore through an initial public offering (IPO), which will include both a fresh issue and an offer-for-sale (OFS).

IPO Details and Fund Utilisation

GNG Electronics Ltd. has submitted its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise up to ₹450 crore through an initial public offering (IPO). The issue includes a fresh issue and an offer-for-sale (OFS) of up to 51 lakh shares.

Promoters Sharad Khandelwal and Vidhi Sharad Khandelwal, who each hold an 18.5% stake, will divest 35,000 shares via the OFS. Amiable Electronics Pvt., the largest shareholder with a 57.29% stake, will offload the remaining 50.03 lakh shares.

From the fresh issue, ₹320 crore will be allocated towards debt reduction, while the balance will be used for general corporate purposes. As of September 2024, the company’s borrowings stood at nearly ₹500 crore. The IPO is being managed by Motilal Oswal Investment Advisors Ltd., IIFL Capital Services Ltd., and JM Financial Ltd.

Business Operations and Financial Performance

GNG Electronics specialises in refurbishing laptops, desktops, and other ICT devices under the brand ‘Electronics Bazaar.’ It has a strong presence in India, the US, Europe, Africa, and the UAE. The company promotes a repair-over-replacement strategy, offering cost benefits and sustainability by reducing electronic waste.

In fiscal 2024, GNG Electronics reported revenue of ₹1,138 crore and a net profit of ₹52.3 crore. Laptop sales contributed nearly 68% of the company’s revenue. Its Indian operations generated ₹467 crore in sales, while international markets brought in ₹660 crore.

Conclusion

With a strong presence in the refurbishing sector and a focus on sustainability, GNG Electronics aims to utilise the IPO proceeds to strengthen its financial position. The offering will provide investors with an opportunity to participate in a growing segment with global reach.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.