GNG Electronics IPO Listing Day Performance: A Comprehensive Analysis
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GNG Electronics IPO delivered a remarkable listing on July 30, 2025, with shares debuting at ₹355 on the NSE and ₹350 on the BSE—reflecting premiums of 49.79% and 47.68% over the issue price of ₹237. This strong market entry rewarded IPO allottees with substantial gains, underscoring investor confidence in the GNG Electronics IPO.
Intraday Performance and Volatility
The stock saw notable volatility post-listing, a common trait for IPOs with high subscription rates. It hit an intraday high of ₹364 (53.58% above the IPO price) but faced profit-booking, leading to a decline. The stock closed lower, reflecting typical post-listing dynamics in the mainboard segment.
Key Trading Metrics:
- Opening Price: ₹355 (NSE), ₹350 (BSE)
- Day High: ₹364
- Day Low: ₹325.35
- Closing Price: ₹333.39–₹333.50 (40.67% above IPO price)
- Trading Volume: 265.45 lakh shares (NSE)
- Market Capitalization: ₹3,802.28 crore
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IPO Subscription Success
The IPO, open from July 23–25, 2025, saw exceptional demand, with an overall subscription of 150.21 times. It received bids for over 209.89 crore shares against the 1.41 crore shares offered, totaling ₹49,745 crore in applications.
| Investor Category | Subscription Multiple |
|---|---|
| Qualified Institutional Buyers (QIBs) | 266.21x |
| Non-Institutional Investors (NIIs) | 226.44x |
| Retail Investors | 47.36x |
| Overall | 150.21x |
- QIBs led with 266.21x, driven by anchor investors like Goldman Sachs and Motilal Oswal Mutual Fund, who raised ₹138.13 crore.
- NIIs subscribed 226.44x, with high-net-worth individuals showing strong interest.
- Retail saw 47.36x subscription, with 42.14 lakh applications.
Grey Market Premium Performance
The Grey Market Premium (GMP) indicated robust pre-listing sentiment:
- GMP Range: ₹90–₹104 (July 23–28, 2025)
- Estimated Listing Price: ₹327–₹341 (37.97–44.30% premium)
- Actual Listing: ₹350–₹355 (47.68–49.79% premium)
The listing outperformed GMP expectations, though profit-booking capped gains.
| Date | GMP (₹) | Estimated Listing Price (₹) | Premium (%) |
|---|---|---|---|
| July 19 | 40 | 277 | 16.88 |
| July 23 | 104 | 341 | 44.30 |
| July 24 | 100 | 337 | 42.19 |
| July 28 | 94 | 331 | 39.66 |
Company Background and Business Model
Founded in 2006, GNG Electronics operates under the Electronics Bazaar brand as India’s largest Microsoft Authorized Refurbisher for laptops and desktops. It offers end-to-end services, including sourcing, refurbishing, sales, warranties, and after-sales support, with a global presence in 38 countries and 4,154 touchpoints as of March 31, 2025. Key partnerships include Vijay Sales, HP, and Lenovo for buyback programs.
Core Operations:
- Refurbishment of laptops, desktops, and ICT devices
- IT asset disposal (ITAD) and e-waste management
- Global sales network across USA, Europe, Africa, and UAE
- Processing capacity: 590,787 devices in FY25
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Financial Performance Highlights
GNG Electronics showcased strong growth in its financials:
| Metric | FY25 | FY24 | Growth |
|---|---|---|---|
| Revenue (₹ Cr) | 1,420.37 | 1,143.80 | 24.2% |
| EBITDA (₹ Cr) | 126.92 | 85.34 | 48.7% |
| EBITDA Margin (%) | 8.94 | 7.46 | +148 bps |
| PAT (₹ Cr) | 69.03 | 52.31 | 31.9% |
| PAT Margin (%) | 4.89 | 4.60 | +29 bps |
| ROE (%) | 30.40 | 28.10 | +230 bps |
| ROCE (%) | 17.31 | 15.80 | +151 bps |
IPO Structure and Utilization
The ₹460.43 crore IPO included:
- Fresh Issue: 1.69 crore shares (₹400 crore)
- Offer for Sale: 25.5 lakh shares (₹60.44 crore)
- Price Band: ₹225–₹237
- Lot Size: 63 shares (₹14,931 for retail)
Fund Utilization:
- Debt repayment/prepayment
- Working capital for GNG and subsidiary Electronics Bazaar FZC
- General corporate purposes
Market Makers and Management
- Lead Managers: Motilal Oswal Investment Advisors, IIFL Capital Services, JM Financial
- Registrar: Bigshare Services Pvt Ltd
- Anchor Investors: 14 funds, including Goldman Sachs, Mirae Asset, and Edelweiss, raising ₹138.13 crore
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Analyst Recommendations Post-Listing
Analysts provided varied guidance:
- Mehta Equities: Suggested conservative investors book profits due to high valuations, while risk-tolerant investors could hold for long-term growth.
- Bajaj Broking: Recommended subscribing for long-term, citing market leadership.
- Swastika Investmart: Advised partial profit-booking with a stop-loss at ₹280.
- WealthMills Securities: Suggested monitoring quarterly results and booking profits.
Market Context and Industry Outlook
The refurbished electronics sector is poised for growth:
- CAGR: Indian refurbished PC market expected to grow at 31.3% through FY30
- Drivers: Sustainability, ESG trends, and cost-conscious enterprise procurement
- Global Reach: GNG’s operations in 38 countries align with circular economy principles
Investment Considerations
Strengths:
- Leadership in India’s refurbished ICT market
- Global footprint with diversified revenue streams
- Strong financial growth (46.3% revenue CAGR)
- ESG alignment and sustainability focus
Risks:
- High debt-to-equity ratio (1.92x)
- Customer concentration (47% revenue from top 10 clients)
- Inventory growth (53% CAGR) posing management challenges
- Stretched valuations post-listing
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Conclusion
GNG Electronics’ IPO delivered a blockbuster listing with a 49.79% premium on NSE, driven by 150.21x oversubscription and a strong GMP. Its leadership in the refurbished electronics sector, robust financials, and global presence position it for sustained growth. However, intraday volatility and high valuations warrant caution. Investors should consider holding for long-term gains while setting stop-losses to manage risks, with a portfolio allocation of 2–3% to mitigate SME stock volatility.
FAQs (Frequently Asked Questions)
- What was the listing premium for GNG Electronics IPO?
GNG Electronics shares listed at a premium of 49.79% on NSE (₹355) and 47.68% on BSE (₹350) over the IPO price of ₹237 per share. - How much was the GNG Electronics IPO oversubscribed?
The IPO was oversubscribed by an impressive 150.21 times overall, with QIBs subscribing 266.21 times and NIIs 226.44 times. - What is GNG Electronics Limited’s core business?
GNG Electronics operates under the “Electronics Bazaar” brand and is India’s largest refurbisher of laptops, desktops, tablets, servers, and other ICT devices, offering end-to-end services. - What were the key financial highlights for GNG Electronics in FY25?
In FY25, GNG Electronics reported a revenue of ₹1,420.37 crore (24.2% growth) and a net profit of ₹69.03 crore (31.9% growth), with improving EBITDA and PAT margins. - What are some of the investment risks associated with GNG Electronics?
Key risks include a relatively high debt-to-equity ratio (1.92), customer concentration (top 10 customers contributing 47% of revenue), and challenges in inventory management due to rapid growth. - How did the actual listing price compare to the Grey Market Premium (GMP)?
The pre-listing GMP ranged from ₹90-₹104 per share, expecting a listing price of ₹327-₹331. The actual listing prices (₹355/₹350) were higher, aligning with the strong grey market sentiment. - How will GNG Electronics utilize the IPO proceeds?
The ₹400 crore fresh issue proceeds will be used primarily for debt repayment/prepayment, meeting working capital requirements, and general corporate purposes.
