MNG ELECTRONICS IPO: WHAT BROKERAGES SAY
Canara Bank Securities: Subscribe for Medium to Long TermThe brokerage mentioned GNG’s strong positioning in the high-growth refurbished ICT device space, backed by partnerships with global OEMs, deep B2B integrations, and a vertically integrated business model.
GNG’s first-mover advantage and end-to-end control over the refurbishment chain offer scalability and sustainability. With industry tailwinds and a growing global footprint, the company is well-placed to benefit from the shift from unorganised to organised players.
The IPO is priced at a P/E of 33.43x and P/BV of 10.17x (based on FY25 earnings), which Canara Bank Securities views as reasonable considering the company’s growth prospects, asset-light model, and sector leadership. The brokerage recommends subscribing with a medium to long-term horizon.
SBI Securities: Subscribe at Cut-off Price
SBI values the company at a P/E multiple of 39.1x on FY25 earnings (post-issue capital) at the upper price band. Between FY23 and FY25, GNG has posted a CAGR of 46% in revenue, 58% in EBITDA, and 46% in PAT, with FY25 estimates at ₹1,411 crore in revenue, ₹117 crore in EBITDA, and ₹69 crore in PAT.
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The company also plans to repay ₹320 crore in debt during FY26, which should improve profitability through interest savings. SBI Securities mentioned the lack of listed like-for-like peers in India and recommended subscribing at the cut-off price.
SMIFS Limited: Subscribe for Long Term
SMIFS recommends a long-term investment, referring to GNG’s opportunity to scale in the growing IT asset disposition (ITAD) and refurbished products markets. The brokerage believes the company is well-positioned to benefit from robust industry tailwinds and its scale-driven cost advantages.
MNG Electronics IPO: Price Band
The price band for the IPO, which will conclude on July 25, has been set at ₹225 to ₹237 per share.At the upper end of the price band, the company’s market valuation is over ₹2,700 crore.
MNG Electronics IPO: GMP today
The public offer is debuting with a robust grey market premium (GMP) of 44%, indicating a healthy appetite.
However, it is important to note that grey market premiums are just an indicator of how the company’s shares are stacked up in the unlisted market and are subject to change rapidly.
The IPO is a combination of a fresh issue of equity shares aggregating to 400 core and an offer for sale (OFS) of 25.5 lakh equity shares by promoters worth ₹60.43 crore at the upper end of the price band.
GNG Electronics IPO: Objective
Proceeds of the fresh issue will be utilised for the debt payment, funding working capital requirements and for general corporate purposes.
Company overview
GNG Electronics is touted to be India’s largest refurbisher of laptops and desktops and ranks among the largest refurbishers of ICT devices globally. The company operates under the brand ‘Electronics Bazaar’ and
has established its presence across the entire refurbishment value chain.
GNG has a huge presence across India, USA, Europe, Africa and UAE and is India’s largest Microsoft authorised refurbisher in terms of refurbishing capabilities.
Financially, GNG has reported strong growth. Revenue rose 24% year-on-year to ₹1,420 crore in FY25, while profit after tax jumped 32% to ₹69 crore.
Motilal Oswal Investment Advisors, IIFL Capital Services, and JM Financial are the book-running lead managers to the issue.
The allotment for the GNG Electronics IPO is expected to be finalised on July 28, and the company is expected to list on the bourses on July 30.
