GNG Electronics IPO Surges 49.79% on Listing Day, Exceeds Expectations

The refurbished ICT devices service provider, GNG Electronics Limited, made a stellar debut on the NSE and BSE on July 30, 2025. After closing its IPO bidding between July 23 - July 25, 2025, the company commenced trading with an impressive 49.79% premium on NSE and 47.68% on BSE, significantly exceeding analyst expectations and delivering exceptional returns to investors in the technology refurbishment sector.

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GNG Electronics Listing Details

GNG Electronics Limited launched its IPO at ₹237 per share with minimum investment of 63 shares costing ₹14,931. The IPO received exceptional response with subscription of 150.21 times - QIB segment leading at remarkable 266.21 times, NII at 226.44 times, whilst retail participation remained strong at 47.36 times, reflecting extraordinary market appetite for technology refurbishment companies.

First-Day Trading Performance Outlook

GNG Electronics delivered exceptional debut performance with substantial premium exceeding analyst expectations, reflecting strong investor confidence in technology refurbishment companies with global operations. The GNG Electronics share price opened at ₹355 on NSE and ₹350 on BSE, representing premiums of 49.79% and 47.68% respectively from the issue price of ₹237, delivering outstanding gains of approximately ₹7,434 per lot for allotted investors and beating analyst forecasts of 30-40% listing premium

Growth Drivers and Challenges

Growth Drivers:

• Market Leadership Position: Leading Indian player in refurbished IT devices with strong global presence across 38 countries and comprehensive service offerings
• Strategic Partnerships: Preferred partner for technology giants providing buyback solutions to major retailers like Vijay Sales and OEM brands including HP and Lenovo
• Comprehensive Service Portfolio: End-to-end solutions spanning sourcing, refurbishment, sales, after-sales services, ITAD, e-waste management, and warranty services
• Strong Financial Performance: Revenue growth of 24% and PAT growth of 32% in FY25 with healthy ROE of 30.40% demonstrating operational efficiency

Challenges:

• High Debt Burden: Significant debt-to-equity ratio of 1.95 with borrowings of ₹446.92 crore requiring careful financial management
• Low Profit Margins: Modest PAT margin of 4.89% and EBITDA margin of 8.94% indicating competitive pricing pressures in refurbishment sector
• High Valuation Concerns: Trading at P/E of 39.14x post-issue with Price to Book Value of 10.17 raising sustainability questions
• Technology Obsolescence Risk: Business dependent on continuous technology refresh cycles and changing consumer preferences affecting demand patterns

Utilisation of IPO Proceeds

• Debt Repayment: ₹320.00 crore for prepayment of outstanding borrowings of the company and material subsidiary Electronics Bazaar FZC improving capital structure 
• General Corporate Purposes: Remaining funds for strategic initiatives and operational requirements supporting business expansion and working capital needs

Financial Performance of GNG Electronics

Revenue: ₹1,420.37 crore for FY25, showing strong 24% growth from ₹1,143.80 crore in FY24, reflecting robust demand for refurbished ICT devices and successful global expansion.

Net Loss: ₹69.03 crore in FY25, demonstrating solid 32% growth from ₹52.31 crore in FY24, with consistent profitability improvement and operational scale benefits.

Financial Metrics: Strong ROE of 30.40%, moderate ROCE of 17.31%, high debt-to-equity of 1.95, modest PAT margin of 4.89%, EBITDA margin of 8.94%, and market capitalisation of ₹2,702.07 crore.

GNG Electronics represents an exceptional investment opportunity in the technology refurbishment sector with outstanding listing performance delivering 49.79% premium backed by extraordinary subscription response of 150.21 times. Despite concerns over high debt levels and modest margins, the company's market leadership position, strategic partnerships with technology giants, and strong financial performance provide significant growth potential in the expanding global refurbished technology market.