GNG Electronics IPO: From Junkyard to Jackpot? Refurbished Laptops, Fresh Valuation, and 2.38x Day-1 Hype

GNG Electronics IPO: From Junkyard to Jackpot? Refurbished Laptops, Fresh Valuation, and 2.38x Day-1 Hype

1. At a Glance

Refurbished laptops may sound boring, but this ₹460 Cr IPO is anything but. With 2.97x retail subscription on Day 1, GNG Electronics brings global e-waste swag to Dalal Street.


2. Introduction with Hook

Remember that dusty laptop you sold off for ₹500 and two Parle-Gs? GNG probably refurbished it and sold it in Europe. Now they want your money again, via IPO.

  • IPO Size: ₹460.43 Cr (₹400 Cr fresh + ₹60.43 Cr OFS)
  • Price Band: ₹225–₹237
  • P/E (Post IPO): ~39x
  • Retail Lot: ₹14,931 (63 shares)

A refurb kingpin with 4,154 sales points across 38 countries, including partnerships with HP, Lenovo, and Vijay Sales. This isn’t your dad’s scrap dealer.


3. Business Model (WTF Do They Even Do?)

Full-stack refurbisher for ICT devices (aka laptops, desktops, e-waste heroes)

  • Refurbishes used IT devices → Sells with warranty under “Electronics Bazaar”
  • Offers ITAD services, buyback programs, e-waste mgmt, doorstep service
  • Global presence: India + US + Europe + Africa + UAE
  • OEM Partners: Lenovo, HP, Vijay Sales

It’s Flipkart meets kabadiwala meets ESG compliance. And it works.


4. Financials Overview

₹ CrFY23FY24FY25
Revenue662.81,143.81,420.4
EBITDA50.084.9126.1
PAT32.452.369.0
Net Worth111.6163.1226.4
Total Borrowings152.0322.3446.9

YoY Revenue Growth:

  • FY23→FY24: +72%
  • FY24→FY25: +24%
  • PAT Margin: ~4.9% (Modi wants Viksit Bharat, they want Viksit EBITDA)

5. Valuation

MetricValue
EPS (Post IPO)₹6.05
IPO Price₹237 (upper band)
P/E (Post)39.1x
Book Value₹23.30
P/BV10.17x
ROE30.4%

Fair Value Estimate:

  • Based on FY25E EPS of ₹6.05 and peer avg P/E of ~30–35x
  • Fair Range: ₹180 – ₹210
  • At ₹237 → Slightly expensive but riding “first mover” & ESG tech tailwind

6. What’s Cooking – News, Triggers, Drama

  • Pre-IPO anchor mop-up: ₹138 Cr raised from anchor investors
  • Massive Day-1 Retail Rush: 2.97x retail subscribed already
  • High Debt: ₹446 Cr — proceeds used to repay ₹320 Cr
  • Global expansion mode — eyes on more refurb hubs in MENA, Europe
  • OEM tie-ups: HP & Lenovo like their refurb game
  • E-waste compliance boosting business from corporates & gov contracts

7. Balance Sheet

ItemMar 23Mar 24Mar 25
Net Worth₹111.6 Cr₹163.1 Cr₹226.4 Cr
Total Assets₹285.5 Cr₹585.8 Cr₹719.4 Cr
Debt₹152.0 Cr₹322.3 Cr₹446.9 Cr

Key Observations:

  • Net worth doubling = Strong retained earnings
  • Debt heavy, but IPO funds to reduce gearing
  • D/E of 1.95 → Expected to come under 1 post IPO

8. Cash Flow – Sab Number Game Hai

₹ CrFY23FY24FY25
Cash Flow from Ops+42.1+68.3+91.7 (est.)
Cash Flow from Investing-32.0-48.0-62.4
Cash Flow from Financing+50.0+100.1+135.2

They’re aggressively ploughing money into capacity, refurb infra & tech. Scaling mode = high burn.


9. Ratios – Sexy or Stressy?

RatioFY25
ROE30.4% ✅
ROCE17.3% ✅
PAT Margin4.89% ⚠️
EBITDA Margin8.94% ⚠️
D/E1.95 ❌
P/E39.1x ❌
Price/Book10.17x ❌

Verdict: Growth ✅, Valuation ❌, Debt ❌
Still… ESG + refurb = narrative rich.


10. P&L Breakdown – Show Me the Money

₹ CrFY23FY24FY25
Revenue662.81,143.81,420.4
EBITDA50.084.9126.1
EBITDA Margin7.5%7.4%8.9%
PAT32.452.369.0
PAT Margin4.9% steady

Note: High revenue growth with modest margins → volume play over pricing power


11. Peer Comparison

CompanyRev (₹ Cr)PAT (₹ Cr)P/EROESector
GNG Electronics1,4206939x30.4%Refurb/ESG
Dixon Tech17,50035090x21%EMS
Syrma SGS2,70017065x18%EMS
Avalon Tech1,2006045x14%EMS

Verdict: Valuation may look high, but ROE justifies some premium vs EMS peers


12. Miscellaneous – Shareholding, Promoters

  • Promoters: Sharad Khandelwal & Family + Kay Kay Overseas
  • Pre-IPO Holding: 95.01%
  • Post-IPO Holding: Drops significantly
  • Anchor Investors: ₹138 Cr, 58.28 lakh shares
  • Registrar: Bigshare
  • Lead Managers: Motilal Oswal, JM Financial, IIFL Capital

Solid institutional interest. Retail got just 35% allocation, but they came running Day 1.


13. EduInvesting Verdict™

GNG = “Global Naya Gadgetwala”

Refurb is the new black. From a dirty garage game to a ₹1,400 Cr revenue, 38-country operation. The first serious “Refurb-as-a-Service” player in the Indian IPO market.

Yes, it’s not cheap (P/E 39x). Yes, debt is high.
But global brand tie-ups, solid growth, and massive retail love on Day 1 say this: It’s not junk anymore.

🏁 For believers in ESG, circular economy, and tech resale — GNG might be a long-term bet with margin potential and MNC love.


Metadata
– Written by EduInvesting Team | July 23, 2025
– Tags: GNG Electronics IPO, Electronics Bazaar, Refurb IPO, HP Lenovo Buyback, ESG Tech IPO, Motilal Oswal, Bigshare, Laptop IPO

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