GNG Electronics Gears Up for IPO: A Refurbishing Powerhouse

GNG Electronics Ltd plans to raise funds via an IPO as per their DRHP submitted to Sebi. The proceeds will reduce debt and finance working capital. Specializing in ICT refurbishment, GNG Electronics is a major player in India, collaborating with brands like Lenovo and HP.

GNG Electronics Ltd has officially filed preliminary papers with the capital markets regulator, Sebi, seeking to raise funds through an initial public offering (IPO). The plan involves a fresh equity share issue worth up to Rs 825 crore and an offer for sale (OFS) consisting of 97 lakh shares by the company's promoters, as stated in their draft red herring prospectus presented on Saturday.

The capital accrued from the fresh issue is projected to contribute Rs 320 crore towards debt payment, Rs 260 crore to support working capital, with the rest allocated for general corporate functions. GNG Electronics, recognized as a leading refurbisher in India, the US, Europe, Africa, and the UAE, operates under the brand 'Electronics Bazaar'.

The firm leads the refurbishment value chain from sourcing to sales and after-sales services, making devices nearly comparable to new ones in both performance and aesthetics. GNG Electronics also maintains partnerships with tech giants Lenovo and HP, further cementing its place as India's largest Microsoft-authorised refurbisher by FY24. Motilal Oswal Investment Advisors, IIFL Capital Services, and JM Financial are the designated book-running lead managers for this IPO.

(With inputs from agencies.)