Upcoming IPO: GNG Electronics gets Sebi nod for Rs 450-crore issue

The public issue will include a fresh equity issue worth up to Rs 450 crore and an offer for sale (OFS) of up to 5.1 million equity shares, according to the company’s draft red herring prospectus (DRHP). The shares carry a face value of Rs 2 each.

Promoters Sharad Khandelwal and Vidhi Sharad Khandelwal will each offload 35,000 shares, while Amiable Electronics will offer up to 5.03 million shares in the OFS.

Motilal Oswal Investment Advisors, IIFL Capital, and JM Financial are the book-running lead managers to the issue. Bigshare Services is the registrar.

The proceeds from the fresh issue will be used to repay or prepay certain borrowings availed by GNG and its material subsidiary, Electronics Bazaar FZC. The remainder will be allocated to general corporate purposes.

Operating under the brand Electronics Bazaar, GNG Electronics is India’s largest Microsoft Authorised Refurbisher by refurbishing capacity as of FY24, according to research firm iLattice. The company has five refurbishing facilities — one in Navi Mumbai, one in Dallas, Texas, and three in Sharjah, UAE — and a presence across India, the US, Europe, Africa, and the Middle East.

For the six months ended September 30, 2024, GNG reported a revenue of Rs 607.9 crore and a net profit of Rs 35.2 crore. In FY24, the company posted a 72 per cent rise in revenue to Rs 1,138.1 crore, while profit after tax (PAT) rose to Rs 52.3 crore from Rs 32.4 crore in FY23. EBITDA for FY24 stood at Rs 84.9 crore, up from Rs 50 crore in the previous year.