GNG Electronics Receives Sebi Approval for ₹450 Crore IPO

GNG Electronics, India's largest laptop and desktop refurbisher, has received Sebi's approval for its IPO, raising up to ₹450 crore via a fresh issue and an OFS of up to 5.1 million equity shares. The company plans to use the net proceeds to prepay outstanding borrowings and for general corporate purposes. In FY24, GNG Electronics reported revenue from operations of ₹1,138.1 crore, up 72% YoY, and a PAT of ₹52.3 crore.

GNG Electronics, India's leading refurbisher of laptops and desktops, has received approval from the Securities and Exchange Board of India (SEBI) for its Initial Public Offering (IPO). The company plans to raise up to ₹450 crore through a fresh issue of equity shares and an offer for sale (OFS) of up to 5.1 million equity shares [1].

The IPO comprises a fresh issue of equity shares aggregating up to ₹450 crore, along with an OFS of up to 5.1 million equity shares with a face value of ₹2 each. The promoters, Sharad Khandelwal, Vidhi Sharad Khandelwal, and Amiable Electronics Pvt Ltd, are selling shares in the IPO [2]. Amiable Electronics is selling the largest number of shares, up to 5.03 million equity shares, while Sharad Khandelwal and Vidhi Sharad Khandelwal are selling up to 35,000 shares each [1].

GNG Electronics plans to use the net issue proceeds to prepay or repay certain outstanding borrowings availed by itself and its material subsidiary, Electronics Bazaar FZC. The remaining funds will be used for general corporate purposes [2].

In the fiscal year 2023-24 (FY24), GNG Electronics reported revenue from operations of ₹1,138.1 crore, up 72% year-over-year (YoY), and a profit after tax (PAT) of ₹52.3 crore. The company's earnings before interest, tax, depreciation, and amortisation (EBITDA) stood at ₹84.9 crore in FY24, up 70% from the previous financial year [2].

GNG Electronics operates under the brand "Electronics Bazaar" and has a strong presence across India, the USA, Europe, Africa, and the UAE. The company is also India's largest Microsoft Authorised Refurbisher, as per the ILattice report [2].

References:
[1] https://www.financialexpress.com/market/ipo-news-electronics-bazaar-parent-firm-gng-electronics-gets-sebi-approval-for-rs-450-crore-ipo-3891078/
[2] https://www.business-standard.com/markets/news/gng-electronics-gets-sebi-nod-for-ipo-to-raise-450-crore-via-fresh-issue-125062400681_1.html