GNG Electronics IPO Allotment Out: 40% GMP Surge, But Is It Time to Sell or Hold?

GNG Electronics IPO Allotment, a key player in the refurbished ICT devices market, is set for a strong market launch as the allocation of its eagerly awaited Initial Public Offering (IPO) is scheduled to be finalized today, July 28. The substantial demand from investors has resulted in a notable increase in its Grey Market Premium (GMP), which has reportedly surged by around 40% in anticipation of its upcoming listing, indicating strong confidence in the company’s future.

The IPO, which was worth Rs 460.43 crore and ended bidding on July 25, had an amazing subscription rate of 146.9 times total, showing how much investors wanted it. With 1.41 crore shares available, the issue attracted applications for an impressive 208.43 crore shares, showcasing the significant demand from both institutional and retail investors for GNG Electronics’ growth narrative.

Unprecedented Investor Demand Across Categories

The final day of bidding witnessed unmatched participation from all investor groups. Qualified Institutional Buyers (QIBs) led the way with an astonishing subscription rate of 266.21 times, highlighting institutional confidence in the company’s fundamentals and future prospects. Non-Institutional Investors (NIIs), which include high net-worth individuals and corporate entities, closely followed with a subscription of 226.44 times.

Even the retail investor segment, often regarded as a reflection of broader public sentiment, demonstrated strong interest, subscribing 47.36 times. This widespread demand across various investor categories presents a positive outlook for GNG Electronics’ market debut.

GNG Electronics: Leading the Refurbished ICT Device Sector

GNG Electronics was started in 2006 and has quickly become a leader in the fast-growing market for refurbishing Information and Communication Technology (ICT) equipment like laptops and PCs.. Operating under the brand name ‘Electronics Bazaar’, the company features a comprehensive business model that covers the entire lifecycle of pre-owned devices – from acquisition and thorough refurbishment to sales and extensive after-sales support.

The company’s operational reach extends beyond India, with a strong presence in international markets including the USA, Europe, Africa, and the UAE. This geographical diversification mitigates risks associated with regional economic fluctuations and significantly broadens its potential market.

GNG Electronics offers a wide range of services, providing products with warranty support designed for both individual consumers and businesses. In addition to refurbishment, the company plays a vital role in IT asset disposition (ITAD) and e-waste management, aligning with global sustainability efforts. Additional value-added services include on-site installation, doorstep service, warranty support, flexible upgrade plans, various payment options, and structured buyback programs for ICT devices. Its clientele features leading brands such as HP India, Lenovo India, and Vijay Sales, underscoring its operational excellence and service quality.

Strong Financial Performance Supports Investor Confidence

GNG Electronics has demonstrated a strong financial trajectory, indicating high operational efficiency and market demand. On a consolidated basis, the company reported a total income of Rs 662.79 crore and a net profit of Rs 32.43 crore for the fiscal year FY23. This growth accelerated significantly in FY24, with total income reaching Rs 1,143.80 crore and net profit increasing to Rs 52.31 crore.

Projections for FY25 suggest a continued upward trend, with an estimated total income of Rs 1,420.37 crore and a net profit of Rs 69.03 crore, highlighting the company’s ongoing growth in the refurbished electronics market. The average Return on Net Worth (RoNW) for the company is an impressive 30.68%, demonstrating effective use of shareholder equity.

IPO Structure and Strategic Use of Proceeds

The IPO of Rs 460.43 crore was meant to improve both the flow of capital and the liquidity of shareholders. It included a fresh issue of 1.68 crore shares, generating Rs 400 crore, along with an Offer-for-Sale (OFS) of 25.5 lakh shares, totaling Rs 60.44 crore. The fresh issue enables GNG Electronics to directly inject new capital into the business, while the OFS offers existing shareholders a chance to sell part of their holdings.

The net proceeds from the fresh issue are strategically allocated to bolster the company’s financial position and support its growth. A considerable portion will be directed towards repaying existing debts incurred by GNG Electronics and its main subsidiary, Electronics Bazaar FZC, thus reducing leverage and enhancing financial stability. The remaining funds will be used to address working capital needs and for general corporate purposes, facilitating future operational growth and strategic plans set forth by management.

Before opening for public subscription, GNG Electronics successfully secured Rs 138.13 crore from anchor investors on July 22, reflecting pre-IPO institutional confidence in its business model and valuation.

Grey Market Buzz and Listing Estimates: A 40% Premium

The unofficial grey market, often a precursor to listing sentiment, has reflected strong investor enthusiasm. GNG Electronics shares have been actively trading at a premium (GMP) between Rs 94 and Rs 102 prior to its listing. This significant GMP suggests a potential listing price between Rs 331 and Rs 337 per share, indicating an impressive approximate 40% increase over the IPO’s upper price band of Rs 237.

Nevertheless, it is crucial for astute investors to remain vigilant, as GMP serves as an unofficial metric shaped by the interplay of demand and supply in the grey market, and it does not assure actual listing performance. The ultimate listing price will be influenced by official market conditions, overall investor sentiment, and the economic environment on the day of the launch.

Expert Insights on Valuation

Although the market sentiment is largely optimistic, expert analysts provide a more nuanced view on GNG Electronics’ valuation, offering essential insights for professional investors.

Deven Choksey Research, in their IPO commentary, noted, “We believe the Company’s initial offering is fully valued, as it is priced at 26.3x TTM EV/EBITDA, which is above the peer average of 22.8x TTM EV/EBITDA. We anticipate continued financial growth driven by steady demand for high-quality refurbished electronic products.” This indicates that while the company is well-positioned for expansion, its current valuation already reflects a considerable share of its future potential.

In a similar vein, with an emphasis on earnings multiples, Bajaj Broking remarked, “Regarding financial performance, over the last three fiscal years, the company has (on a consolidated basis) reported Total income or net profit for FY23 was Rs 662.79 cr and Rs 32.43 cr, for FY24 it was Rs 1143.80 cr and Rs 52.31 cr, and for FY25 it was Rs 1420.37 cr and Rs 69.03 cror.

This highlights the ongoing trends and potential outlook for the refurbishment of IT devices segment. The company has an average RoNW of 30.68%. If we consider FY25 annualized earnings, the asking price reflects a P/E of 39.17. Based on FY24 earnings, the P/E is at 51.63.” This evaluation emphasizes the premium valuation that GNG Electronics is achieving, indicative of both its robust growth potential and the competitive dynamics within the sector.

Key Issue Information and Upcoming Timeline

Each equity share has a nominal value of Rs 2, and the IPO price range has been set at Rs 237 per share.. Retail investors needed to apply for a minimum of 63 shares, which amounts to an investment of Rs 14,175 at the highest end of the price range.

Public subscriptions for GNG Electronics’ Initial Public Offering (IPO) were accepted from July 23 to July 25, 2025. After the bidding period concluded, the allocation of shares is being finalized today, July 28. The company’s shares are anticipated to officially list on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on July 30, signifying its formal entry into the public markets.

How to Verify Your GNG Electronics IPO Allotment Status

For the numerous investors who took part in the GNG Electronics IPO, the next immediate step is to check their allotment status. The process has been simplified across various platforms for ease of access:

Through Registrar – Bigshare Services:

• Visit the official Bigshare IPO allotment page.
• From the dropdown menu, select ‘GNG Electronics IPO’.
• Choose one of the following options to continue: PAN, Application Number, DP ID/Client ID, or Bank Account Number.
• Input the necessary details based on your choice.

Through NSE (National Stock Exchange

• Navigate to the NSE IPO allotment tracking page.
• Click on ‘Equity and SME IPO Bid Details’.
• From the IPO list, select ‘GNG Electronics IPO’.
• Enter your Application Number and PAN.

Through BSE (Bombay Stock Exchange):

• Go to the official BSE IPO allotment page.
• Under ‘Issue Type’, select ‘Equity’.
• From the list of issues, choose ‘GNG Electronics IPO’.
• Enter either your Application Number or PAN (Permanent Account Number).
• Check the box to complete the captcha (“I’m not a robot”).
• Click on ‘Search’ to check your allotment status.

By adhering to these simple steps on any of the official platforms, investors can swiftly determine if they have been assigned shares in this highly anticipated IPO.

As GNG Electronics gears up for its market launch on July 30, all attention will be focused on its listing performance. The impressive subscription figures, along with a strong grey market premium, reflect considerable investor confidence in the company’s business model and growth potential within the rapidly expanding refurbished electronics industry. Although expert assessments indicate that the issue is fully valued, the ongoing demand for high-quality refurbished tech products and GNG’s comprehensive operations make it a noteworthy entity to monitor in the upcoming months.