Eyeing to raise ₹8.25 billion, refurbishing firm GNG Electronics Ltd is planning an IPO, with ₹3.2 billion for debt repayment and ₹2.6 billion for working capital.
GNG Electronics Ltd has initiated the process of raising funds by filing preliminary documents with the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO). The IPO will consist of a fresh issuance of equity shares worth up to ₹8.25 billion, alongside an offer for sale (OFS) of up to 9.7 million shares by the company’s promoters.
According to the draft red herring prospectus (DRHP) filed on Saturday, the OFS includes the sale of 35,000 shares each by Sharad Khandelwal and Vidhi Sharad Khandelwal, as well as 9.63 million shares by Amiable Electronics.
The proceeds from the fresh issue, amounting to ₹3.2 billion, will primarily be used to pay down the company’s debt. An additional ₹2.6 billion will be allocated to support the company’s working capital needs, with any remaining funds directed toward general corporate purposes.
GNG Electronics specialises in the refurbishment of laptops and desktops, with a notable presence in India, the United States, Europe, Africa, and the UAE. Operating under the brand ‘Electronics Bazaar,’ the company manages the entire refurbishment process, from sourcing and refurbishing to sales, after-sales services, and warranty provisions.
The company’s refurbishment process ensures that ICT devices such as laptops, desktops, tablets, servers, premium smartphones, mobile workstations, and accessories are restored to a condition similar to new products in terms of performance and appearance. This allows GNG Electronics to offer laptops at about one-third the cost of new models, with other devices like desktops, tablets, servers, and smartphones priced at 35-50% lower than their new counterparts.
As of FY24, GNG Electronics is recognised as India’s largest Microsoft-authorised refurbisher based on its refurbishment capabilities.
The company is also an approved refurbishment partner of two major global brands, Lenovo and HP, which hold significant market shares of 24% and 21%, respectively, as of 2023.
