The initial public offering (IPO) of GNG Electronics, India’s largest refurbisher of laptops and desktops, saw strong investor interest and was fully subscribed within hours of opening on Wednesday.
As of 10:50 am, the IPO received bids for 1,82,02,842 shares against 1,41,88,644 shares on offer, translating to a subscription of 1.28 times, according to the BSE.
Among investor categories, non-institutional investors (NIIs) led the charge, with the segment subscribing 2.37 times its allotted portion. The retail investor category also saw good participation, with 1.53 times of the reserved allocation booked.
However, demand from qualified institutional buyers (QIBs) remained muted, with just 2 per cent of their quota subscribed so far.
The IPO remained open for subscription until Friday, July 25. The company has launched the issue, aimed at raising Rs 460.4 crore.
In a press conference, the company announced the price band between Rs 225 and Rs 237. The issue includes a fresh issue of equity shares worth Rs 400 crore, along with an offer for sale (OFS) of 25.5 lakh shares by promoters, aggregating to Rs 60.43 crore at the upper price band.
Investors can bid for a minimum of one lot comprising 63 equity shares, and in multiples thereafter. At the upper end of the price band, the company commands a market capitalisation of over Rs 2,700 crore.
Use of proceeds
Net proceeds from the fresh issue will be used for:
- Repayment of outstanding borrowings
- Funding working capital requirements
- General corporate purposes
Allocation Breakdown:
50 per cent reserved for Qualified Institutional Buyers (QIBs)
35 per cent for Retail Individual Investors (RIIs)
15 per cent for Non-Institutional Investors (NIIs)
The book-running lead managers (BRLMs) are Motilal Oswal Investment Advisors, IIFL Capital Services, and JM Financial, while Bigshare Services is the registrar to the issue.
GNG Electronics shares are expected to list on the stock exchanges on July 30.
About GNG Electronics
GNG Electronics, known under the brand “Electronics Bazaar”, is a leading player in India’s refurbished ICT segment.
The company operates a vertically integrated model, handling the entire refurbishment lifecycle–procurement, refurbishment, sales, service, and warranty. Its product range includes laptops, desktops, tablets, servers, premium smartphones, and mobile workstations.
