GNG Electronics eyes IPO route to raise ₹825 crore, files DRHP with SEBI | Stock Market News

GNG Electronics, touted as India’s largest refurbisher of laptops and desktops and a leading player in refurbishing ICT (information and communication technology) devices, is gearing up to enter the primary market with plans to raise ₹825 crore.

The electronics firm, on December 14, filed its draft red herring prospectus (DRHP) with the market regulator, the Securities and Exchange Board of India (SEBI).

According to the DRHP, The IPO comprises of a fresh issue of equity shares of face value of ₹2 each aggregating up to ₹825 crore and an offer for sale of up to 97 lakh shares of face value of ₹2 each. The offer for sale comprises up to 35,000 equity shares by Sharad Khandelwal, up to 35,000 equity shares by Vidhi Sharad Khandelwal and up to 9,630,000 equity shares by Amiable Electronics Private Limited.

Motilal Oswal Investment Advisors Limited, IIFL Capital Services Limited and JM Financial are the book-running lead managers of the issue, while Bigshare Services Private Limited is the registrar to the issue.

The company intends to use the net proceeds from the issue to prepay or repay all or a portion of certain outstanding borrowings availed by it and its material subsidiary, Electronics Bazaar FZC. Besides, some part of the net proceeds will be used for funding the working capital requirements and for general corporate purposes.

About GNG Electronics

According to the company’s DRHP, as of March 31, 2024, GNG Electronics is India’s largest refurbisher of laptops and desktops and among the largest refurbishers of ICT devices overall, both globally and in India, with significant presence across India, USA, Europe, Africa and UAE, in terms of value.

“We are India’s largest Microsoft authorised refurbisher, in terms of refurbishing capability, as of fiscal 2024 (Source: 1Lattice Report). We are also the IT asset disposal partner for India’s second-largest software company, in terms of market capitalisation as of the calendar year 2024, procuring their used IT assets (Source: 1Lattice Report),” said the company.

The company operates under the brand “Electronics Bazaar” and is present across the full refurbishment value chain, from sourcing to refurbishment to sales to after-sale services and warranty provision.

According to the DRHP, the company’s consolidated net profit for FY24 stood at ₹52.14 crore, compared to ₹32.33 crore in FY23 and ₹21.71 crore in FY22. Till September 30 this year, the company’s profit stood at ₹35.10 crore.

Revenue from operations for FY22 came at ₹5,20.50 crore, which rose to ₹659.54 crore in FY23 and ₹1,138.14 crore in FY24. For the period ended September 30 of the current financial year, the company earned a revenue of ₹607.96 crore.

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