Highlights
| Issue Size –: 1,94,27,637 shares | Issue Open/Close – 23 July / 25 July, 2025 |
| Price Band (Rs.) 225 – 237 | Issue Size (Rs.) – 4,604 mn |
| Face Value (Rs) 2 | Lot Size (shares) 63 |
GNG Electronics Ltd. (GNGEL), incorporated in 2006, is India’s largest refurbisher of laptops and desktops and among the largest refurbishers of ICT Devices overall, both globally and in India with significant presence across India, USA, Europe, Africa and UAE. The company follow a repair-over-replacement approach, which provides cost advantages and helps achieve true sustainability by reducing carbon footprint.
GNGEL operate under the brand Electronics Bazaar, with presence across the full refurbishment value chain i.e., from sourcing to refurbishment to sales, to after-sale services and providing warranty. They solve customers’ requirement of affordable, reliable and premium ICT Devices which are as good as new devices, both functionally and aesthetically, and are backed by proven warranty.
Their comprehensive process of refurbishment of ICT devices such as laptops, desktops, tablets, servers, premium smartphones, mobile workstations & accessories ensures that such devices are similar to new, in terms of both performance and aesthetics, and able to offer laptops at 1/3rd price of new devices and other devices like desktops, tablets, servers, premium smartphones, mobile workstations & accessories at 35-50 pct price of new devices.
Out of the total proceeds of Rs. 4,604 mn, ~Rs. 3,200 mn would go towards repayment of certain outstanding borrowings availed by the Company and Subsidiary. Rs. 800 mn would be utilized towards general corporate purpose. Rs. 604 mn would go toward existing selling shareholders of the company.
Key Highlights
- The global refurbished electronics segment grew from USD 60.3 bn in CY18 to USD 110.6 bn in CY24, at a CAGR of 10.7 pct and is expected to grow at 17.4 pct CAGR over CY24-29 reaching USD 246.7 bn in CY29. Similarly, the Indian used and refurbished market has seen significant growth expanding from USD 11.3 bn in FY19 to USD 19.8 bn in FY25, and is projected to reach USD 40.7 bn by FY30, at a CAGR of 15.6 pct over FY25- 30.
- GNGEL is one of the few companies which pioneered the concept of warranty for the refurbished ICT Devices to provide comfort and trust to customers and is still industry leading the warranty. Devices refurbished by the company sell at a premium compared to other players in the industry due to superior quality of product and GNGEL ability to provide proven and reliable warranty solution.
- They have a multi-channel global procurement network of 557 suppliers supported by an extensive procurement network in India and across the globe. Their procurement network comprises corporates, consulting companies, intermediaries, recyclers, refurbishment partners, educational institutes, leasing companies, NBFCs, large format retail stores and OEM brand stores.
- GNGEL’s pricing coupled with the eco-friendly nature of their refurbishing, provides a twin solution for affordability and sustainability, which positions them well to harness the global shift to sustainable solutions. GNGEL is actively promoting the recycling of surplus IT assets, aiming to consolidate and standardize the unorganized refurbished electronics market.
- GNGEL’s key growth strategies includes (i) Expanding footprint and increase market presence in India and other countries to capitalize on the industry tailwinds (ii) Enhancing procurement in India and other countries while parallelly strengthening brand relationships (iii) Focus on ESG standards and expanding opportunities with OEMs.
- The sales of the company registered CAGR of 46.28 pct over FY23-25 while EBITDA and profit grown by 58.81 pct CAGR and 45.93 pct CAGR over same period. In FY25 the company reported sales of Rs. 14,111 mn, which grew 23.98 pct YoY while EBITDA of the company rose 48.52 pct YoY to Rs. 1,261 mn. In FY25 company posted profit of Rs. 690 mn, rose 31.93 pct YoY.
Key Risk
- Company’s cash flow from operations is in negative. Despite generating profits, the company is not able to convert the profit into cash.
- GNGEL business model is highly dependent on a reliable and efficient supply chain for the procurement of used laptops, components and other materials necessary for the refurbishment process. Additionally, any changes in regulations related to e-waste disposal on used ICT Devices could further affect their access to inventory.
Financial Performance
| Particulars | FY23 | FY24 | FY25 |
| Sales (Rs. mn) | 6,595 | 11,381 | 14,111 |
| EBITDA (Rs. mn) | 500 | 849 | 1,261 |
| EBITDA Margin (%) | 7.59% | 7.46% | 8.94% |
| Profit/Loss (Rs. mn) | 324 | 523 | 690 |
| Profit/Loss Margin (%) | 4.92% | 4.60% | 4.89% |
| ROE % | 30.40% | 31.96% | 28.97% |
| ROCE (%) | 17.91% | 16.72% | 17.31% |
Peer Comparison Based on FY25 Financials
| Particulars | GNGEL | Newjaisa |
| Sales (Rs. mn) | 14,111 | 656.55 |
| EBITDA (Rs. mn) | 1,261 | 14.76 |
| EBITDA Margin (%) | 8.94% | 2.25% |
| Profit/Loss (Rs. mn) | 690 | (11.32) |
| Profit/Loss Margin (%) | 4.89% | (1.72%) |
| ROE % | 28.97% | (1.45%) |
| ROCE (%) | 17.31% | (0.36%) |
Valuation
GNG Electronics Limited is revolutionizing the way technology is accessed, utilized, and sustained. They specialize in offering high-quality refurbished laptops and desktops tailored to meet the needs of individuals, businesses, and organizations. At the upper end of the price band of Rs. 237, the issue priced at PE of 39.16x of FY25 earnings post issue. The issue appears to be fully priced. One can subscribe for listing gains.
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