GNG Electronics IPO: A look at its strengths, risks and financials from RHP

GNG Electronics IPO: The initial public offering of GNG Electronics, which is involved in refurbishing laptops and desktops, will hit the primary market on July 23. The issue will conclude on July 25. The price band is set at ₹225 to ₹237 per equity share, and a lot consists of 63 shares.

The ₹460.43 crore initial share sale is a fresh issuance of ₹400 crore as well as an offer for sale of ₹60.44 crore. The company is expected to list on July 30.

GNG Electronics IPO: Strengths

• GNG Electronics is the largest refurbisher of laptops and desktops in India. It is also among the biggest refurbishers of ICT (Information and Communication Technology) devices globally.
• It has a robust global supply chain and an established sourcing base along with a long tail of vendors.
• It runs five refurbishing plants with one facility in Navi Mumbai, one in Texas and three in Sharjah. All of its refurbishing facilities have the ability to refurbish an array of products.
• GNG Electronics is guided by an experienced leadership team, led by its promoter and founder, Sharad Khandelwal, who has nearly three decades of experience in the information and communication technology industry.

GNG Electronics IPO: Risks

• As of financial years 2024-25 (FY25) and FY24, it derived 75.59% and 67.87% of its operational revenue solely from sales of laptops. Any decline in demand for such products can affect its business, revenue and profitability.
• The company sources parts and materials like hard drives and RAM for operations from a combination of domestic and foreign suppliers. Any increase in prices of such material can affect business.
• The firm has substantial indebtedness which needs significant cash flows to service and limit its ability to operate freely. Its debt servicing coverage ratio for FY25, FY24 and FY23 was 0.25 times, 0.25 times and 0.40 times, respectively. Any breach in terms under a financing arrangement can affect business and financial conditions.
• GNG Electronics' revenue generated from foreign markets accounts for a key portion of revenue from operations. As of FY25 and FY24, it derived 75.53% and 57.97%, respectively, of its revenue from outside India.

GNG Electronics IPO: Financials

GNG Electronics posted a 31.98% increase in its profit after tax (PAT) to ₹69.03 crore in FY25, compared to ₹52.3 crore a year back.

Its revenue from operations stood at ₹1,411.1 crore in fiscal 2025, up 23.98% from ₹1,138.1 crore in FY24.