GNG Electronics IPO Review: Should You Invest or just a Hype?

GNG Electronics is launching its IPO on July 23 with a price band of ₹225–₹237 in lot size 63 for retail investors. Here’s all you need to know before you apply.

About GNG (Electronics Bazar)

GNG Electronics Limited, the parent company of Electronics Bazaar, specializes in high-quality refurbished laptops and desktops, making technology accessible and sustainable at affordable prices. Based in India with CPCB, MPCB, R2v3, and ISO certifications, GNG ensures rigorous quality checks and environmental responsibility while reducing e-waste.

Electronics Bazaar offers top-brand refurbished devices, leasing options, reliable warranties of up to 3 years, and secure buyback services. The company also provides IT e-waste disposal services, ensuring eco-friendly solutions.

GNG Electronics is expanding its reach in India and globally (USA, UAE), focusing on sustainability, quality, and customer satisfaction. By choosing GNG Electronics and Electronics Bazaar, customers gain reliable, cost-effective technology while contributing to environmental conservation.

Business

GNG Electronics Limited (“Electronics Bazaar”) is India’s largest refurbisher of laptops and desktops, also among the top refurbishers of ICT devices globally and in India by value as of March 31, 2025.
The company refurbishes laptops, desktops, tablets, servers, premium smartphones, mobile workstations, and accessories, offering them at 35–50% lower prices than new devices, with 1–3 years warranties.

They operate in 38 countries with facilities in India, USA, and UAE, enabling access to ~70% of global GDP, reducing delivery times, and optimizing freight costs.
It is a Microsoft Authorised Refurbisher, ensuring high-quality refurbishment processes and sustainability compliance

GNG Electronics IPO: Business Model

GNG Electronics Limited, India’s largest refurbisher of laptops and desktops, operates on a full-stack refurbishment model, sourcing used devices from corporates and leasing firms, refurbishing them with advanced repairs, and selling them at 35–50% lower prices than new devices.

They distribute through online marketplaces, retail chains, and B2B sales to MSMEs and institutions, offering 1–3 years warranty and custom configurations, ensuring trust and affordability. Their global operations across 38 countries, Microsoft Authorised Refurbisher status, and ESG-compliant practices align with the rising demand for sustainable, quality-assured refurbished electronics.

This business model positions GNG Electronics to capture India’s growing refurbished electronics market while promoting affordability and environmental responsibility

Key Performance Indicators (FY23–FY25)

KPI	Unit	FY23	FY24	FY25
Revenue from Operations	₹ million	6,595.42	11,381.38	14,111.10
Gross Margin	₹ million	1,011.45	1,401.52	2,524.67
Gross Margin %	%	15.34%	12.31%	17.89%
EBITDA	₹ million	500.4	849.04	1,261.44
EBITDA Margin %	%	7.59%	7.46%	8.94%
PAT	₹ million	324.28	523.05	690.33
PAT Margin %	%	4.92%	4.60%	4.89%
RoE	%	28.97%	31.96%	30.40%
ROCE	%	17.91%	16.72%	17.31%
Net Working Capital (days)	days	61	42	68
PPE (Gross) Turnover Ratio	x	60.65	31.97	30.41
Volume of Devices Refurbished	units	248,135	369,320	590,787
No. of Customers Served	count	1,833	3,252	4,154
No. of Procurement Partners	count	265	356	557

Source: “Basis for Offer Price” section .

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🧾 Balance Sheet Summary (Restated Consolidated)

Particulars	₹ million	FY23	FY24	FY25
Assets
– Non‑Current Assets	(Total Assets – Current Assets)*	1,316.41⁺	1,798.53⁺	3,055.91⁺
– Current Assets		1,538.61	4,059.71	4,138.70
Total Assets		2,855.02	5,858.24	7,194.61
Liabilities & Equity
– Non‑Current Liabilities		198.14	162.73	198.14
– Current Liabilities		1,538.61	4,059.71	4,138.70
Total Liabilities		1,736.75	4,222.44	4,923.32
– Equity		1,118.27	1,635.80	2,271.29
Total Liabilities & Equity		2,855.02	5,858.24	7,194.61

⁺ Non‑Current Assets = Total Assets − Current Assets.
All figures from Restated Consolidated Statement of Assets & Liabilities .

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This table gives you a snapshot of GNG Electronics’ operating performance over three years alongside its evolving financial position. These KPIs and balance sheet trends underscore the company’s rapid revenue growth, improving margins, and strengthening capitalization ahead of its IPO.

Here are key strengths and risks directly anchored to the company’s Key Performance Indicators:

✅ Strengths (Based on KPIs)

Robust Revenue Growth

46.3 % CAGR in revenues from ₹6,595 mn (FY23) to ₹14,111 mn (FY25) demonstrates strong market traction and scalability.

1. Improving Profitability
   • EBITDA margin expanded from 7.59 % (FY23) to 8.94 % (FY25), reflecting better cost controls and operating leverage.
   • PAT margin sustained around 4.9 %, even as scale increased.
2. High Returns on Capital
   • RoE of 30.40 % and ROCE of 17.31 % in FY25 indicate efficient use of equity and overall capital.
3. Rapid Volume & Customer Expansion
   • Devices refurbished jumped from 248 k units (FY23) to 591 k units (FY25).
   • Customer count grew from 1,833 to 4,154, validating widening market acceptance.
4. Strong Procurement Network
   • Procurement partners rose from 265 (FY23) to 557 (FY25), reducing sourcing concentration risk.

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⚠️ Risks (Based on KPIs)

1. Working Capital Intensity
   • Net working capital days swung from 61 days (FY23) to 42 days (FY24) then back up to 68 days (FY25), indicating potential cash‐flow volatility as the business scales.
2. Margin Volatility
   • Gross margin dipped to 12.31 % in FY24 before rebounding to 17.89 % in FY25; reliance on cost of goods management remains high.
3. Capital Expenditure & Asset Turnover
   • PPE turnover halved from 60.7× (FY23) to 30.4× (FY25), signalling heavier asset base investment which may dampen returns if utilization slows.
4. Scale‐Dependent Profitability
   • Though EBITDA margin improved, profits depend on maintaining high volumes; any demand slowdown could pressure fixed‐cost absorption.
5. Market & Technology Risks
   • Rapid tech obsolescence may render large refurbished inventories outdated, affecting volume and margins if certification and grading processes lag.

Peer Performance Comparison

Metric	GNG Electronics	Newjaisa Technologies	Close the Loop	MusicMagpie
Revenue FY25	₹14,111 mn	₹656 mn	—	—
PAT Margin	7.09 %	–0.32 %	7.89 %	–55.82 %
ROCE	17.91 %	13.26 %	15.79 %	–36.72 %

GNG % cost savings and promote sustainability. With a 46 % revenue CAGR, robust EBITDA margin expansion and strong RoE (30 %), its balance sheet shows a doubling of equity (₹1,118 mn to ₹2,271 mn in two years) alongside manageable liabilities, underpinning both growth and financial resilience.

The upcoming IPO—raising ₹4,000 mn fresh capital and enabling partial promoter exits—will:

• Fund working capital to smooth volatile net‑working‑capital days (42 → 68),
• Expand capacity across India, USA & UAE facilities,
• Optimize leverage by retiring higher‑cost debt,
• Elevate brand visibility in organized markets.

Against peers like Newjaisa (negative margins) and MusicMagpie (loss‑making), GNG’s positive EBITDA and PAT growth, superior ROCE, and rapid volume scale‑up mark it as a front‑runner in the global refurbished electronics sector. For investors, GNG offers a blend of high growth, profitability, and social impact—a compelling entry into India’s circular‑economy boom.

Disclaimer

This presentation is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities of GNG Electronics Limited. The views expressed herein are those of the author as of the date of publication and are subject to change without notice. All financial data and projections are based on publicly available information and the company’s Red Herring Prospectus; actual results may differ materially. Investing in an IPO involves risks, including the potential loss of principal. Prospective investors should read the final Prospectus carefully, consult their own financial, legal, and tax advisors, and consider all risks before making an investment decision.