📈 GNG Electronics IPO: Should You Invest?
GNG Electronics, a leading refurbisher of laptops and desktops, has launched a ₹460.43 crore IPO that’s generating strong investor interest. Here’s a detailed breakdown to help you decide whether to invest—and how much.
🧠 Why Consider Investing?
✅ Strong Market Position
- India’s largest Microsoft-authorized refurbisher of ICT devices.
- Operates under the brand Electronics Bazaar, with presence in 38 countries including the US, Europe, Africa, and UAE.
✅ Robust Financials
- FY25 Revenue: ₹1,420 crore (24% YoY growth)
- FY25 Net Profit: ₹69 crore (32% YoY growth)
- Return on Equity (ROE): 30.4%
- EBITDA Margin: 8.94%
- PAT Margin: 4.89%
✅ Industry Tailwinds
- Refurbished PC market in India expected to grow at 31.3% CAGR till FY30.
- Global market projected to reach $61 billion by 2029.
✅ Debt Reduction Strategy
- ₹320 crore from IPO proceeds earmarked for debt repayment, improving profitability and reducing interest burden.
✅ Investor Confidence
- Raised ₹138 crore from anchor investors like Goldman Sachs, Motilal Oswal, Mirae Asset, and Edelweiss.
- Grey Market Premium (GMP): ₹103–₹105, suggesting a ~44% listing gain.
💸 IPO Details
| Item | Value |
|---|---|
| Price Band | ₹225–₹237 per share |
| Lot Size | 63 shares |
| Minimum Investment | ₹14,931 (1 lot at ₹237) |
| IPO Dates | July 23–25, 2025 |
| Listing Date | July 30, 2025 (BSE & NSE) |
| Valuation (P/E) | ~39.1x based on FY25 EPS |
| Market Cap (Post IPO) | ₹2,700+ crore |
🧮 How Much Should You Invest?
That depends on your risk appetite and investment horizon:
- Conservative Investor: 1–2 lots (₹14,931–₹29,862) for exposure to a niche growth sector.
- Moderate Investor: 3–5 lots (₹44,793–₹74,655) to benefit from potential listing gains and long-term growth.
- Aggressive Investor: Up to 13 lots (₹1,94,103), which is the retail investor cap.
📌 Note: IPOs are inherently risky. While GNG shows promise, always diversify and avoid overexposure to a single stock.
