GNG Electronics IPO subscribed over 15x on day 2: GMP rises to 42%
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The initial public offering ( IPO ) of GNG Electronics continued to see strong investor demand on the second day of bidding, with the issue subscribed 15.11 times as of 11:27 AM on Thursday.The company received bids for 21.44 crore shares against 1.41 crore on offer. Non-institutional investors (NIIs) led the demand, subscribing to 34.8 times their quota, while the retail portion was subscribed 14.22 times. The qualified institutional buyer (QIB) segment saw a 1.77 times subscription.In the grey market, GNG Electronics shares were quoting a premium of Rs 100–105, translating to an estimated 42% upside over the upper end of the price band. The grey market premium (GMP) has edged up from Rs 98–103 a day earlier.The IPO includes a fresh issue of Rs 400 crore and an offer for sale (OFS) of Rs 60.44 crore by existing shareholders. The price band is set at Rs 225–237 per share, valuing the company at a P/E of 33.3x based on FY25 earnings.Ahead of the IPO, the company raised Rs 138 crore from anchor investors on July 22 by allotting over 58 lakh shares.SBI Securities and Canara Bank Securities have both given the issue a "Subscribe" rating, citing scale, growth, and strategic positioning.'GNG operates in a fragmented but fast-formalising market. With operations in 38 countries, refurbishing over 5.9 lakh devices in FY25, and a 46% revenue CAGR over FY23–FY25, the company is well poised to benefit from affordability-driven demand and ESG tailwinds,' the brokerages said.About GNG ElectronicsGNG Electronics, which operates under the Electronics Bazaar brand, is India's largest refurbisher of laptops and desktops. The company scaled up its refurbished volume from 2.5 lakh devices in FY23 to 5.9 lakh in FY25. Its procurement network also expanded from 265 to 557 partners during the same period.Laptops contributed 75.6% of FY25 revenue, with the rest coming from desktops, tablets, smartphones, servers, and other electronics. As of March 2025, GNG had a presence in 38 countries and operated 4,154 customer touchpoints.Over the past two years, GNG more than doubled its revenue and profit. For FY25, the company reported revenue of Rs 1,411 crore and net profit of Rs 69 crore, up from Rs 659.5 crore and Rs 32.4 crore in FY23. The EBITDA margin improved from 7.6% to 8.9% during the period.Working capital rose to Rs 261 crore in FY25, up 2.5x from FY23. Based on FY25 earnings and post-IPO equity, the stock is priced at a P/E multiple of up to 39x. The company has no direct listed peers on the main board.The IPO will remain open from July 23 to July 25, 2025. The allotment is expected to be finalized on Monday, July 28, with a tentative listing date of Wednesday, July 30, on both the BSE and NSE.Motilal Oswal Investment Advisors Limited is the book-running lead manager to the issue, and Bigshare Services Pvt Ltd is the registrar.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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