GNG Electronics Ltd has filed preliminary papers with capital markets regulator SEBI to raise funds through an initial public offering (IPO).
The proposed IPO is a combination of a fresh issue of equity shares aggregating up to ₹825 core and an offer for sale (OFS) of up to 97 lakh equity shares by promoters, according to the draft red herring prospectus (DRHP) filed on Saturday.
The OFS comprises sale of 35,000 shares each by Sharad Khandelwal and Vidhi Sharad Khandelwal and 96.30 lakh shares by Amiable Electronics.
Proceeds of the fresh issue to the tune of ₹320 crore will be utilised for the debt payment, ₹260 crore for funding working capital requirements of the company and the remaining amount for general corporate purposes.
GNG Electronics is one of the leading refurbisher of laptops and desktops with significant presence across India, the US, Europe, Africa, and the UAE.
The company operates under the brand “Electronics Bazaar”, with presence across the full refurbishment value chain from sourcing to refurbishment to sales, to after-sale services and providing warranty.
The company’s comprehensive process of refurbishment of ICT devices such as laptops, desktops, tablets, servers, premium smartphones, mobile workstations, and accessories ensures that such devices are similar to new in terms of both performance and aesthetics, and able to offer laptops at one-third price of new devices and other devices like tablets, servers, premium smart phones, mobile workstations and accessories at 35-50 per cent price of new devices.
GNG Electronics is India’s largest Microsoft-authorised refurbisher, in terms of refurbishing capability, as of FY24.
The company is a certified refurbishment partner with Lenovo and HP, which are the top two global brands, in terms of market share of 24 per cent and 21 per cent, respectively, as of calendar year 2023.
Motilal Oswal Investment Advisors, IIFL Capital Services, and JM Financial are the book-running lead managers to the issue.
