GNG Electronics IPO subscribed 100 times, GMP rises to 42%
What's the story
GNG Electronics' initial public offering (IPO) has seen a strong response from investors, with the issue subscribed over 102 times by Friday afternoon. The company received bids for 144.8 crore shares against the 1.41 crore shares on offer. Non-institutional investors led the demand with a subscription of over 203 times, followed by retail investors at about 40 times and qualified institutional buyers at around 134 times.
Market performance
GMP details, IPO size
In the gray market, GNG Electronics' shares were trading at a premium of ₹100, indicating a possible 42% gain from the upper end of the price band. The IPO consists of a fresh issue worth ₹400 crore and an offer for sale (OFS) worth ₹60.44 crore by existing shareholders.
IPO details
Price band, anchor investors, and brokerages' views
The price band for the IPO has been fixed at ₹225-237 per share, giving the company a price-to-earnings (P/E) ratio of 33.3x on FY25 earnings. Prior to the IPO, GNG Electronics raised ₹138 crore from anchor investors by allotting over 58 lakh shares. SBI Securities and Canara Bank Securities have both rated GNG Electronics as "Subscribe" due to its scale, growth trajectory, and strategic positioning in a fragmented but fast-formalizing market.
Financial growth
Revenue and profit growth
GNG Electronics has more than doubled its revenue and profit in the last two years. In FY25, the company's revenue surged to ₹1,411 crore while net profit stood at ₹69 crore. This is a significant increase from FY23 when revenue was at ₹659.5 crore and net profit was at ₹32.4 crore. The company's EBITDA margin also improved from 7.6% to 8.9%.
Operational expansion
India's largest refurbisher of laptops and desktops
GNG Electronics, which operates under the Electronics Bazaar brand, is India's largest refurbisher of laptops and desktops. The company has seen a massive jump in its refurbished volume from 2.5 lakh devices in FY23 to 5.9 lakh in FY25. Its procurement network also expanded significantly during this period, from 265 to 557 partners. As of March 2025, GNG had a presence in 38 countries with over 4,154 customer touchpoints.