GNG Electronics refiles draft papers to raise funds via IPO, fresh issue size reduced to Rs 450 crore

GNG Electronics IPO

Mumbai-based GNG Electronics, the India’s largest refurbisher of laptops and desktops, has refiled preliminary papers with the SEBI to raise funds via initial public offering, on March 25.

The IPO will be a combination of fresh issuance of equity shares worth Rs 450 crore and an offer-for-sale of 51 lakh shares by promoters, as per the draft papers filed with the regulator.

The company has reduced its fresh issue as well as offer-for-sale size in the latest filing. Earlier in December 2024, it had filed draft red herring prospectus with the SEBI for IPO which was comprised of fresh issue of shares worth Rs 825 crore, and an offer-for-sale (OFS) of 97 lakh shares by promoters.

Promoters Sharad Khandelwal, and Vidhi Sharad Khandelwal is planning to sell 35,000 equity shares each via OFS. Amiable Electronics, the promoter entity, will be selling 50.3 lakh shares via OFS.

Further, the company may consider raising funds up to Rs 90 crore in pre-IPO round. If it successfully closes pre-IPO placement, the said amount will be reduced from the fresh issue.

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GNG Electronics is also among the largest refurbishers of ICT devices, both globally and in India. It follows a repair-over-replacement approach, which provides cost advantages and helps achieve true sustainability by reducing carbon footprint.

Further, it is India’s largest Microsoft Authorised Refurbisher, in terms of refurbishing capability, as of fiscal 2024.

The company is proposed to utilise Rs 320 crore out of fresh issue proceeds for repaying debt, and the remainder money for general corporate purposes. Its total borrowings were Rs 499 crore as of September 2024.

Motilal Oswal Investment Advisors, IIFL Capital Services, and JM Financial will manage the public issue as merchant bankers.