IGI Logo

GNG Electronics

• GNG Electronics is coming out with a 100% book building; initial public offering (IPO) of 2,03,27,777 shares of Rs 2 each in a price band Rs 225-237 per equity share.
• Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
• The issue will open for subscription on July 23, 2025 and will close on July 25, 2025.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 2 and is priced 112.50 times of its face value on the lower side and 118.50 times on the higher side.
• Book running lead managers to the issue are Motilal Oswal Investment Advisors, IIFL Capital Services and JM Financial.
• Compliance Officer for the issue is Sarita Tufani Vishwakarma.

Profile of the company

GNG Electronics 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, in terms of value, as of March 31, 2025. It follows a repair-over-replacement approach, which provides cost advantages and helps achieve true sustainability by reducing carbon footprint. It is India’s largest Microsoft authorised refurbisher, in terms of refurbishing capability, as of Fiscal 2025. It also serves as an IT asset disposal partner for India’s second - largest software company, in terms of market capitalisation as of Fiscal 2025, procuring their used IT assets.

It operates 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. It solves 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. It also provides tailor - made solutions for its customers. Its 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 desktops, tablets, servers, premium smartphones, mobile workstations and accessories at 35-50% price of new devices. 

It 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 are still industry leading the warranty terms. Devices refurbished by it sell at a premium compared to other players in the industry due to superior quality of product and its ability to provide proven and reliable warranty solution. It is also a certified refurbishment partner with Lenovo and HP, which are top two global brands, in terms of market share of 26% and 22%, respectively, as of CY 2024. Additionally, it serves as IT asset disposition (ITAD) partners for leasing companies, IT consulting companies and banks as it meets their sustainability and data privacy requirements.

Proceed is being used for:

• Prepayment and/or repayment, in full or in part, of all or a portion of certain outstanding borrowings availed by the company and its Material Subsidiary namely, Electronics Bazaar FZC
• General corporate purposes

Industry Overview

The global consumer electronics market grew from $1,121 billion in CY18 to $1,246 billion in CY24, growing at a CAGR of 1.8% from CY18-24. The muted growth during this period in the consumer electronics market between CY22-24 was primarily driven by the chip shortage in electronics market, global supply chain disruptions, economic uncertainty, reduction in purchases post-pandemic due to the surge of electronic purchases during the pandemic. The market is a dynamic and rapidly evolving industry that encompasses a wide range of products such as smartphones, desktops, laptops, televisions, wearable devices, smart home appliances and other accessories Upcoming growth will be fueled by advancements in AI, IoT, and machine learning, which require more efficient devices. On the domestic front, the Indian consumer electronics market has experienced rapid growth in recent years, driven by rising disposable incomes, urbanization, and increasing digital connectivity. The Indian consumer electronics market was valued at $71.7 billion in FY25 and is expected to rise at a CAGR of 12.4% from FY25-30 to reach $128.6 billion.

Meanwhile, the global used and refurbished electronics market comprises of electronics that are either resold ‘as-is’ (which are classified as used for the purposes of this report) or after being refurbished. The global used and refurbished electronics market grew from $159.2 billion in CY18 to $212.1 billion in CY24, at a CAGR of 4.9%. By CY29, the market is projected to reach $352.4 billion, growing at a 10.7% CAGR as consumers and industries increasingly prioritize cost-effective solutions. On the domestic front, the market has seen significant growth, expanding from $11.3 billion in FY19 to $19.8 billion in FY25, and is projected to reach $40.7 billion by FY30, at a CAGR of 15.6% over FY25-30. With rising demand for affordable and high-quality tech products, consumers and businesses are also becoming more environmentally conscious. This dual shift is driving substantial growth in the used and refurbished electronics market, as these products offer budget-friendly access to essential technology while reducing e-waste.

The refurbishment market has demonstrated steady growth, rising from approximately $0.2 billion in FY19 to $1.0 billion in FY25, at 28% CAGR. It is projected to reach $4 billion by FY30, reflecting a CAGR of 30% from FY25 to FY30. In FY25, the refurbished segment contributed $1.0 billion, while the used segment accounted for $1.4 billion. As businesses and students increasingly seek cost-effective alternatives, the used and refurbished PC market is poised for significant growth. This demand is further amplified by advancements in refurbishment technologies, which restore PCs and laptops to a like-new condition, enhancing their performance and appeal. Coupled with rigorous quality assurance measures, consumer trust is on the rise. Organized players, backed by OEM-certified programs and robust warranties, are strategically positioned to leverage these trends, driving continued expansion within the market. 

Pros and strengths

India’s largest refurbisher of laptops and desktops: The company 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, in terms of value, as of March 31, 2025. The electronics refurbishment industry is uniquely placed to grow even in down cycles of economic growth as it serves the replacement demand of new devices with affordable solutions. The used and refurbished laptop markets in key geographies such as India, USA and Europe are undergoing a significant shift towards organized players. However, even the organised market remains fragmented with no player occupying more than 5% of the market and large number of small-scale outlets with limited reach and refurbishment capacity.

Strong global supply chain and established sourcing base: The company’s depth in procurement, refurbishment and sales puts it at a definite advantage. The pricing strength comes from its ability to “buy better, refurbish better and sell better”. It has Value Added Reseller network, with its refurbished ICT Devices being sold in 38 countries as of March 31, 2025. Its sales network comprises, 4,154 touchpoints in India and globally, as of March 31, 2025. This reach is further supported by VAR partners who sell to corporates and others. It is one of the preferred partners to Value Added Resellers, distributors and other customers alike.

Well - established refurbishing capabilities and state - of - art infrastructure: It operates five refurbishing facilities with one facility located in Navi Mumbai, India; three in Sharjah, UAE; and one in Texas, USA having a cumulative area of 58,127.82 sq. ft. It has one of the largest facilities among Indian ICT refurbishes, with a high-level of integration. Its facility in Sharjah, UAE is located in Sharjah Free Zone which offers several benefits including in house accommodation to the employees. All its facilities are equipped with round-the-clock surveillance, emergency alarm systems and advanced anti-theft sensors. The strategic positioning of these facilities near major markets provides it with significant cost and logistical advantages, allowing for efficient operations and timely delivery. These advanced facilities are equipped with technology and manpower, enabling it to handle high volumes of products efficiently while ensuring quality control throughout the refurbishment process. This global presence allows it to serve customers in multiple countries with ease and reliability, and also exploit huge global market opportunities.

Well positioned to harness global shift to sustainability and growing focus on ESG: Since its commencement of refurbishing operations in 2014, it has established a strong foothold in the ICT Devices industry, driven by a management team with a vast experience in this industry. Its expertise allows it to navigate the complexities of the market and consistently deliver high-quality products. The countries around the world are placing greater focus on Environmental, Social, and Governance (ESG) standards as sustainability becomes a global priority. One pressing issue is the growing volume of electronic waste (e-waste), with only a small portion currently being recycled. Refurbishing electronics offers a pricing coupled with extension of useful life solution, helping to reduce e-waste by extending the life of devices. Its refurbished ICT Devices, priced up to one third lower of new devices and backed by a one to three years’ warranty, provide consumers with an option that is both environmentally responsible and economically advantageous.

Risks and concerns

Maximum revenue comes from limited customers: A substantial portion of the company’s revenues is dependent on its top 10 customers. During Fiscals 2025, 2024 and 2023 it derived 46.59%, 55.77% and 44.14%, respectively of its total revenue from operations from its top 10 customers. The loss of any of its top 10 customers for any reason (including due to loss of, or failure of its customers to win orders / contracts from their customers to renew its existing arrangements with its customers; limitation to meet any change in quality specification, change in technology, disputes with a customer; adverse changes in the financial condition of its customers, such as possible bankruptcy or liquidation or other financial hardship) may have a material adverse effect on its business, results of operations and financial condition.

Depend on a limited number of suppliers for inventory: The fluctuating prices of key components, coupled with its lack of long-term supply agreements, could significantly impact on its cost structure and profitability. Given that a substantial portion of its material purchases are concentrated among a few suppliers, any increase in prices or disruption in supply from these suppliers could have an outsized impact on its operations. The absence of long-term contracts leaves it more vulnerable to market volatility, making it difficult to predict costs and manage its margins effectively. This exposure to pricing fluctuations underscores the importance of its ability to negotiate favorable terms with suppliers and, where possible, secure consistent pricing to mitigate potential risks.

Significant revenue comes from outside India: The company’s revenue generated from outside India accounts for a significant portion of its revenue from operations. As of Fiscal 2025, Fiscal 2024 and Fiscal 2023, it derived 75.53%, 57.97% and 50.53%, respectively, of its revenue from outside India. Any failure to manage its business in overseas markets or its inability to grow its business in new geographic markets may affect its growth, which may have a material adverse effect on its business, operations, prospects or financial condition.

Geographical constrain: The company has domestic and international operations, with five refurbishing facilities located across India, Middle East and USA. It has one refurbishing facility in Navi Mumbai, India, one refurbishing facility in Texas, USA and three refurbishing facilities in Sharjah, UAE, aggregating to cumulative area of 58,127.82 sq. ft. This regional concentration exposes it to risks such as economic slowdowns, social or political unrest, natural calamities, or adverse government policies in these regions. Any negative developments in these regions may have an adverse effect on its business, operations and financial performance.

Outlook

GNG Electronics offers refurbishing services for laptops, desktops and ICT Devices, both globally and in India. The company has a significant presence across India, USA, Europe, Africa and UAE. The company have a sales network with the refurbished ICT Devices being sold in 38 countries as of March 31, 2025. GNG Electronics sales network comprises 4,154 touchpoints in India and globally, as of March 31, 2025. On the concern side, the company’s revenue generated from outside India accounts for a significant portion of its revenue from operations. Any failure to manage its business in overseas markets or its inability to grow its business in new geographic markets may affect its growth. A substantial portion of its revenues is dependent on its top 10 customers. The loss of any of these customers may adversely affect its revenues and profitability.

The issue has been offering 2,03,27,777 shares in a price band of Rs 225-237 per equity share. The aggregate size of the offer is around Rs 457.37 crore to Rs 481.77 crore based on lower and upper price band respectively. Minimum application is to be made for 63 shares and in multiples thereon, thereafter. On performance front, the company’s revenue from operations increased by 23.98% to Rs 14,111.10 million for Fiscal 2025 from Rs 11,381.38 million for Fiscal 2024. Moreover, the company’s profit after tax for the period increased by 31.98% to Rs 690.33 million for Fiscal 2025 from Rs 523.05 million for Fiscal 2024.

Going forward, the company plans to expand its customer base. It plans to penetrate deeper into geographies, establishing new relationships on the back of established credentials and leveraging more on existing customer network. It also intends to identify new channels and use cases to diversify and increase its customer base. This expansion is supported by its facilities located in India, UAE, and the USA, which gives it the flexibility to scale and meet growing market demands efficiently and effectively access around 70% of global GDP from these strategic locations. By deepening its penetration in existing markets and expanding in new markets, and expanding its customer base, it is well - positioned to drive sustained growth. its comprehensive approach ensures that it not only meet the immediate needs of its clients but also create lasting relationships that fuel long-term business success.