Why GNG Electronics surged nearly 50% on listing: Key drivers behind the rally

The stock listed at ₹355, a surge of 49.79% from the issue price on the National Stock Exchange. At 12:47 pm, the scrip was down 4.78% to ₹338 apiece. Its market capitalisation stands at ₹3,849.14 crore.

On the BSE, the stock began trading at ₹350, reflecting an increase of 47.68%.

The objectives of the issue include debt payment and working capital requirements. A part will also be utilised for general corporate purposes.

Why GNG Electronics soared nearly 50% on listing: A look at key drivers

The public offer of GNG Electronics, which operates under the brand 'Electronics Bazaar', secured a massive 146.90 times subscription during the bidding period due to strong participation from institutional buyers.

GNG Electronics is one of the leading refurbishers of laptops and desktops with a prominent presence across India, the US, Europe, Africa, and the UAE. The company is among the largest refurbishers of ICT devices domestically and globally.

The company, in its RHP, stated that it is well positioned to harness global shift to sustainability and growing focus on environmental, social, and governance (ESG).

The global refurbished personal market is growing at a compound annual growth rate (CAGR) of 18.9%, which could benefit the company, market analysts said.

In the last few years, the company has recorded consistent financial performance.

According to analysts tracking the company, GNG Electronics made a robust market debut, which was largely in line with their expectations.

The strong listing shows robust investor enthusiasm. The public offer witnessed strong demand across categories, particularly from Qualified Institutional Buyers (QIBs) and Non-Institutional Investors (NIIs), underscoring confidence in the company’s growth story.