GNG Electronics IPO Skyrockets with 26.9 Times Subscription on Day Two

The IPO of GNG Electronics Ltd witnessed an impressive 26.90 times subscription on its second day. Garnering bids for over 38 million shares, it has especially drawn attention from non-institutional investors. The proceeds aim to repay debt, fund working capital and support corporate activities. The offering closes on July 25.

GNG Electronics Ltd's initial public offering has captured significant investor attention as it achieved 26.90 times subscription by the second day of its launch. The shares have been highly popular, especially among non-institutional investors who oversubscribed their portion by 68.57 times. Retail investors followed closely with a 23.01-times subscription for their share.

In a strategic financial move, GNG Electronics raised Rs 138 crore from anchor investors before the IPO's opening. The company has set the price band at Rs 225-237 per share, aiming for a total market valuation exceeding Rs 2,700 crore at the high end of the price range. The IPO, worth Rs 460 crore, includes a fresh issue of Rs 400 crore and an offer for sale (OFS) valued at Rs 60.43 crore by promoters.

The funds generated from this IPO will be instrumental in reducing GNG Electronics' debt, fulfilling working capital needs, and facilitating general corporate initiatives. Renowned for its refurbishing operations, the company operates under the 'Electronics Bazaar' brand and maintains substantial operations in India, the US, Europe, Africa, and the UAE. Leading financial entities like Motilal Oswal Investment Advisors, IIFL Capital Services and JM Financial are managing the IPO process.

(With inputs from agencies.)