The GNG Electronics IPO opened today, July 23, 2025, offering investors a chance to participate in the growth of a leading refurbished ICT (Information and Communication Technology) device company. The IPO will remain open for subscription until July 25, 2025. Here's a breakdown of what you need to know to make an informed decision.
Issue Details:
Objectives of the IPO:
GNG Electronics plans to use the net proceeds from the fresh issue for the following purposes:
Company Overview:
Founded in 2006, GNG Electronics specializes in refurbishing laptops, desktops, and other ICT devices for domestic and international markets. Operating under the "Electronics Bazaar" brand, the company has a presence in India, the USA, Europe, Africa, and the UAE. GNG Electronics manages the entire refurbishment value chain, including sourcing, refurbishment, sales, and after-sales services. As of March 31, 2025, the company's refurbished devices were sold across a network spanning 38 countries.
Financial Performance:
GNG Electronics has demonstrated consistent revenue and profit growth.
Grey Market Premium (GMP):
The grey market premium (GMP) for GNG Electronics IPO has shown an upward trend, indicating positive investor sentiment. As of today, July 23, 2025, the GMP is around ₹103-₹105. This suggests a potential listing price of approximately ₹340-₹342 per share, a premium of over 40% from the IPO price of ₹237. However, the GMP is not an official price and is subject to change based on market conditions.
Anchor Investors:
Prior to the public offering, GNG Electronics raised ₹138 crore from anchor investors, including Goldman Sachs Fund, Motilal Oswal Mutual Fund, Mirae Asset Mutual Fund, and Edelweiss Mutual Fund. The company allotted 58,28,290 equity shares to 14 funds at ₹237 per share.
Brokerage Recommendations:
Several brokerages have given a "Subscribe" rating to the GNG Electronics IPO. They cite the company's leadership in the refurbished IT devices market, growth potential, asset-light business model, and favorable industry trends as key reasons for their positive outlook. Canara Bank Securities and SBI Securities have also recommended subscribing to the IPO.
Competitive Strengths:
Concerns:
Investors should consider the risks associated with the IPO, which are detailed in the company's RHP (Red Herring Prospectus).
Subscription Status:
Within hours of opening on July 23, 2025, the GNG Electronics IPO was substantially subscribed. By late morning, the IPO was 80% subscribed.
How to Apply:
To apply for the GNG Electronics IPO, you need to have a demat account. You can apply through your broker's online platform or through the registrar's website.
Conclusion:
GNG Electronics is a well-established player in the growing refurbished electronics market. The IPO has garnered positive reviews from brokerages, and the GMP indicates a healthy investor interest. The company's strong financials, strategic positioning, and growth prospects make it an attractive investment opportunity. However, investors should carefully consider their own risk tolerance and conduct thorough research before making a decision.
