GNG Electronics shares are expected to list at a premium of around 25 percent over the issue price when they debut on the stock exchanges on July 30, following strong investor interest during the initial public offering (IPO).
The Rs 460.43-crore IPO was subscribed 146.90 times at close, indicating robust demand from all investor categories.
"Given the strong subscription numbers and prevailing market sentiment, we anticipate a listing gain of about 25 percent or more," said Prashanth Tapse, Research Analyst, Mehta Equities.
Tapse advised conservative investors to consider booking profits on the listing day to benefit from the initial momentum. "For long-term or high-risk investors, GNG Electronics offers a promising opportunity, supported by scalable operations, strong VAR partnerships, and positioning within the SME ICT segment," he added.
Tapse also recommended that investors who were not allotted shares may consider accumulating the stock on any post-listing dip, particularly if volatility emerges due to market conditions.
Mahesh M Ojha, AVP - Research and Business Development, Hensex Securities, said the stock is expected to list with a premium in the range of 25–30 percent. "Short-term investors may partially book profits, while long-term investors should evaluate the company’s performance over the next two to three quarters before making further investment decisions," he said.
Narendra Solanki, Head - Fundamental Research (Investment Services), Anand Rathi Shares and Stock Brokers, said GNG Electronics may benefit from a first-mover advantage in the electronics refurbishment space, especially in B2B segments.
However, he cautioned that the business model is working capital intensive, with a lag between procurement and sales cycles. "We had recommended a ‘Subscribe – Long Term’ rating. Investors allotted shares could consider booking partial profits on listing and hold the remaining for long-term gains," Solanki added.
The company’s integrated operations — spanning procurement, refurbishment, and after-sales — coupled with partnerships with players such as HP, Lenovo, and Microsoft, are seen as key drivers for growth. GNG also operates ISO-certified refurbishing facilities to meet rising demand for affordable ICT solutions in the SME sector.
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