GNG Electronics Ltd., India’s largest refurbisher of laptops and desktops, is making waves with its upcoming Initial Public Offering (IPO), set to open from July 23 to July 25, 2025. Operating under the “Electronics Bazaar” brand, the company is a global leader in refurbishing Information and Communication Technology (ICT) devices. Its IPO has garnered significant attention, particularly due to its Grey Market Premium (GMP). This blog provides a detailed look at GNG Electronics’ IPO GMP, financial performance over the last five years, profit ratios, expenses, and the pros and cons for investors, all in simple language. Based on updates as of July 21, 2025, this 700–800-word guide aims to help you make informed investment decisions.
GNG Electronics IPO GMP: What’s the Buzz?
The Grey Market Premium (GMP) indicates the premium at which IPO shares trade in the unofficial market before listing, offering clues about potential listing gains. As of July 20, 2025, GNG Electronics’ IPO GMP is ₹71 per share, up from ₹40 on July 19, reflecting strong investor interest. With the IPO price band set at ₹225–₹237 per share, the estimated listing price is around ₹308 (₹237 + ₹71), suggesting a potential 30% gain on listing day, expected on July 30, 2025.
However, GMP is volatile and unregulated, so it’s not a guaranteed predictor of listing performance. Investors should weigh GMP alongside the company’s fundamentals and market conditions to assess its potential.
GNG Electronics IPO Details
The GNG Electronics IPO is a book-built issue worth ₹460.43 crore, comprising a fresh issue of 1.69 crore shares (₹400 crore) and an Offer for Sale (OFS) of 25.5 lakh shares (₹60.44 crore). The price band is ₹225–₹237 per share, with a minimum lot size of 63 shares, requiring a retail investment of ₹14,931 at the upper band. The IPO opens on July 23, closes on July 25, with allotment finalization on July 28, and listing on BSE and NSE on July 30, 2025.
The funds will be used to repay ₹320 crore of debt and for general corporate purposes. The retail quota is 35%, QIB 50%, and HNI 15%, with ₹138.13 crore already raised from anchor investors on July 22.
Financial Performance: Last 5 Years
GNG Electronics has shown impressive growth, driven by its leadership in the refurbished ICT market. The table below summarizes its revenue, profit, profit ratio, and expenses from FY21 to FY25, based on consolidated financials from the Draft Red Herring Prospectus (DRHP):
|
Financial Year |
Revenue (₹ Cr) |
Profit (PAT) (₹ Cr) |
Profit Ratio (%) |
Expenses (₹ Cr) |
|---|---|---|---|---|
|
FY21 |
403.20 |
18.50 |
4.59 |
378.60 |
|
FY22 |
520.50 |
21.80 |
4.19 |
488.40 |
|
FY23 |
659.54 |
32.43 |
4.92 |
618.80 |
|
FY24 |
1,138.14 |
52.30 |
4.60 |
1,071.50 |
|
FY25 |
1,411.11 |
69.03 |
4.89 |
1,325.07 |
Sources: DRHP, IPO Central, Groww, and Business Standard.
Financial Insights
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Revenue Growth: Revenue surged from ₹403.20 crore in FY21 to ₹1,411.11 crore in FY25, reflecting a 46% Compound Annual Growth Rate (CAGR). This growth is driven by a global sales network across 38 countries and 4,154 touchpoints.
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Profit Growth: Profit After Tax (PAT) soared from ₹18.50 crore in FY21 to ₹69.03 crore in FY25, with a 32% year-on-year increase from FY24.
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Profit Ratio: The profit-after-tax (PAT) margin has remained stable, ranging from 4.19% to 4.92%, though it’s slightly below the industry average due to high operational costs.
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Expenses: Expenses rose in line with revenue, reaching ₹1,325.07 crore in FY25, driven by investments in refurbishing facilities, employee costs, and global expansion.
Positive Aspects
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Market Leadership: GNG is India’s largest laptop and desktop refurbisher and a global leader in ICT device refurbishment, with certifications from Microsoft, HP, and Lenovo.
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Strong Growth: A 46% revenue CAGR and 32% PAT growth from FY24 to FY25 highlight its scalability and market demand.
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Global Reach: With 75.5% of FY24 revenue from exports and sales in 38 countries, GNG benefits from a robust international presence.
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Sustainability Focus: Refurbished devices, sold at 35–70% less than new ones, align with ESG (Environmental, Social, Governance) trends, appealing to eco-conscious consumers.
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Promising GMP: The ₹71 GMP indicates strong pre-listing demand, with a potential 30% listing gain.
Negative Aspects
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High Debt: As of September 2024, GNG’s borrowings stood at ₹500 crore, posing a financial risk despite IPO proceeds targeting debt repayment.
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Geographic Concentration: Over 100% of FY25 revenue comes from India, the Middle East, and the USA, making it vulnerable to regional economic or regulatory issues.
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Moderate Profit Margins: A 4.89% PAT margin in FY25 is lower than some peers, reflecting high operational costs.
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GMP Volatility: GMP is speculative and may not guarantee listing gains if market sentiment shifts.
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Competition: While ahead of its listed peer Newjaisa Technologies (₹66.45 crore revenue, negative EPS), GNG faces growing competition in the refurbished market.
Should You Invest in GNG Electronics IPO?
GNG Electronics’ IPO is appealing due to its leadership in the fast-growing refurbished ICT market, projected to reach $4 billion in India by FY30 with a 30% CAGR. Here’s what to consider:
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Short-Term Investors: The ₹71 GMP suggests a potential 30% listing gain, but volatility in the grey market and broader market sentiment (e.g., Nifty’s recent flat performance) calls for caution. Monitor subscription levels and market trends before applying.
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Long-Term Investors: GNG’s strong revenue growth, global reach, and sustainability focus make it a solid pick. The debt repayment plan and partnerships with brands like Microsoft enhance its long-term potential. Consider applying at the cutoff price for better allocation chances.
What’s Next?
The IPO’s subscription status (July 23–25) and Q1 FY26 results will be critical. High subscription and strong financials could drive listing gains, while oversubscription may reduce allotment chances for retail investors. The company’s focus on debt reduction and expansion in high-growth markets bodes well for future performance.
Conclusion
GNG Electronics’ IPO, with a ₹71 GMP and a promising 30% listing gain, is a hot topic in July 2025. Its robust revenue growth (₹1,411.11 crore in FY25) and leadership in the refurbished ICT market make it a compelling choice, but high debt and moderate margins warrant caution. Investors should analyze subscription trends, consult financial advisors, and align the IPO with their risk appetite. Are you considering applying for GNG Electronics’ IPO? Share your thoughts below!