GNG Electronics Ltd IPO

About IPO

GNG Electronics Ltd will soon launch its IPO, which will comprise a fresh issue and an offer for sale. While the fresh issue size is pegged at [.], the offer for sale consists of up to 9,700,000 equity shares with a face value of ₹2 each.

Objectives of GNG Electronics Ltd

The Net Proceeds of the Fresh Issue are proposed to be utilised in the following manner:

• Prepayment and/or repayment, in full or in part, of all or a portion of certain outstanding borrowings availed by our Company and our Material Subsidiary, namely, Electronics Bazaar FZC.
• Funding the working capital requirements of the Company.
• General corporate purposes.

Industry Outlook

The Indian consumer electronics market has experienced rapid growth in recent years, driven by rising disposable incomes, urbanisation, and increasing digital connectivity. The Indian consumer electronics market was valued at US$ 63.8B in FY24 and is expected to rise at a CAGR of 12.4% from FY24-29 to reach US$ 114.4B. Government initiatives like Digital India and Make in India, along with rapid urbanisation, boost tech adoption and local manufacturing. The e-commerce boom and improved internet access have also made electronics more accessible, accelerating market growth

The global refurbished personal computer market grew from US$ 9.7 billion in CY18 to US$ 14.4 billion in CY23, reflecting an 8% CAGR, and is projected to reach US$ 38.3 billion by CY28, at 22%.

Company Information

GNG Electronics Ltd is India’s largest refurbisher of laptops and desktops and among the largest refurbishers of ICT Devices overall, both globally and in India, the company is India’s largest Microsoft Authorised Refurbisher in terms of refurbishing capability as of Fiscal 2024 and are also the IT asset disposal partner for India’s second-largest software company, in terms of market capitalisation as of Calendar Year 2024.

Risks of GNG Electronics Ltd IPO

• As of the six-month period ended September 30, 2024, and for Fiscal 2024, Fiscal 2023, and Fiscal 2022, the company derived 75.59%, 67.87%, 79.97%, and 89.12% of its operational revenue from laptop sales. The continued success of this segment is crucial for its business and growth prospects, and any decline in demand could adversely impact revenue and profitability.

• An increase in the prices of essential parts and materials may negatively impact the company's business and financial performance. Past price fluctuations have affected procurement, and similar volatility could continue to pose challenges in the future.

• A substantial portion of their revenues is dependent on their top 10 customers. In Fiscal 2024, they derived 55.77% of our total revenue from operations from their top 10 customers. The loss of any of these customers may adversely affect their revenues and profitability.

Anchor Investor Bidding Date TBA

IPO Registrar and Book Running Lead Manager

Bigshare Services Private Limited is the registrar of the GNG Electronics Ltd IPO. The book-running lead managers are:

• Motilal Oswal Investment Advisors Limited
• IIFL Capital Services Limited (formerly known as IIFL Securities Limited)
• JM Financial Limited

Business Model

GNG Electronics Ltd is India’s largest refurbisher of laptops and desktops with a strong global presence across the USA, Europe, Africa, and UAE

##Company Growth Trajectory

The global refurbished personal computer market grew from US$ 9.7 billion in CY18 to US$ 14.4 billion in CY23, reflecting an 8% CAGR, and is projected to reach US$ 38.3 billion by CY28 at 22%. Similarly, the Indian refurbished PC market grew from US$ 0.2 billion in FY19 to US$ 0.8 billion in FY24, showing a 27% CAGR, and is expected to reach US$ 3.3 billion by FY29 at a CAGR of 33%. A common trend in both the Indian and global markets is the increasing preference for refurbished devices as against “as-is used” devices. In India, the organised market share grew from approximately 5% in FY19 to 11% in FY24, with a robust CAGR of 33%. This share is projected to further expand to 32% by FY29, at an impressive CAGR of 42%

How to Check the Allotment Status of GNG Electronics Ltd?

You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of Bigshare Services Private Limited. To check the status on the BSE website:

• Visit the BSE website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is GNG Electronics Ltd
• Enter your application number or PAN number
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

To check status on the website of Bigshare Services Private Limited:

• Visit the website of Link Intime Private Ltd
• Click on IPO allotment Status
• Choose the name of the company from ‘Select Company’ dropdown
• Enter any of these - PAN Number, Application Number, DP/Client ID, Account Number / IFSC
• Click on Submit to check the status

How to Apply for GNG Electronics Ltd?

Here are the steps to apply for GNG Electronics Ltd IPO:

• Step 1: Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.