GNG Electronics IPO: The preliminary public providing (IPO) of GNG Electronics–largest refurbisher of laptops and desktops–will open on Wednesday (July 23) and investor can apply bid for the IPO till Friday, July 25. The corporate goals to boost Rs 460.4 crore and glued the value band between Rs 225 and Rs 237. Do you have to subscribe to problem? Know what analysts at home brokerages suggest.
SBI Securities on GNG Electronics IPO
Analysts at SBI Securities have valued the corporate at a P/E a number of of 39.1x primarily based on FY25 earnings on the higher finish of the value band. In response to the PSU brokerage, the business outlook additionally stays promisingas the worldwide and Indian refurbished PC markets projected to develop at CAGRs of 18.9 per cent and 31.3 per cent, respectively, over the subsequent 5-6 years.
Moreover, GNG plans to repay Rs 320 crore of debt by FY26, which is anticipated to scale back curiosity prices and improve profitability. The corporate has no listed friends in India providing a like-for-like comparability. Attributable to these elements, SBI Securities has advisable to subscribe the IPO on the cut-off value.
Canara Financial institution Securities on GNG Electronics IPO
One other PSU brokerage, Canara Financial institution Securities mentioned that GNG Electronics has constructed a aggressive place within the high-growth refurbished ICT business, backed by international OEM partnerships, B2B integrations, and an end-to-end enterprise mannequin. “Its first-mover benefit and full management of the refurbishment chain add to its scalability and sustainability,” the brokerage mentioned.
In response to Canara Financial institution Securities, the IPO is priced at a P/E of 33.43x and a P/BV of 10.17x (FY25 earnings), which the brokerage believes is cheap given GNG’s development trajectory, sector management, and asset-light operations. The brokerage has to advisable apply for the IPO to well-informed buyers with a medium to long-term funding horizon.
Ventura Securities on GNG Electronics IPO
Ventura Securities’ analysts additionally has a ‘subscribe’ ranking, citing the corporate’s concentrate on debt discount, which is anticipated to enhance margins going ahead.
GNG Electronics IPO particulars
GNG Electronics IPO lot measurement: Buyers can bid for at least one lot, comprising 63 fairness shares, and in multiples thereof. On the higher finish of the value band, GNG Electronics is valued at a market capitalisation of over Rs 2,700 crore.
GNG Electronics IPO construction: The IPO consists of a contemporary problem of fairness shares value Rs 400 crore and a suggestion on the market (OFS) of 25.5 lakh fairness shares by promoters, amounting to Rs 60.43 crore on the higher value band.
GNG Electronics IPO proceeds utilisation: The online proceeds from the contemporary problem can be used as follows:
- Reimbursement of excellent borrowings
- Funding working capital wants
- Basic company functions
GNG Electronics IPO allocation particulars
The IPO allocation is split as follows:
- 50 per cent for Certified Institutional Patrons (QIBs)
- 35 per cent for Retail Particular person Buyers (RIIs)
- 15 per cent for Non-Institutional Buyers (NIIs)
GNG Electronics IPO BRLMs: The book-running lead managers (BRLMs) to the problem are Motilal Oswal Funding Advisors, IIFL Capital Companies, and JM Monetary.
GNG Electronics IPO Registrar: The registrar to the problem is Bigshare Companies.
GNG Electronics IPO Itemizing Date: The fairness shares are anticipated to be listed on the inventory exchanges on July 30.
About GNG Electronics
GNG Electronics, working beneath the model identify “Electronics Bazaar”, is a number one participant within the refurbished ICT (Data and Communication Know-how) phase. The corporate has a vertically built-in enterprise mannequin overlaying the complete refurbishment worth chain—from procurement and refurbishment to gross sales, after-sales service, and guarantee assist. Its product portfolio contains laptops, desktops, tablets, servers, premium smartphones, and cellular workstations.
(Disclaimer: The views/strategies/suggestions expressed right here on this article are solely by funding consultants. Zee Enterprise suggests its readers seek the advice of their funding advisers earlier than making any monetary resolution.)
