GNG Electronics shares tumble over 8% after listing. Should you buy, sell or hold?
GNG Electronics
fell over 8% to Rs 325.5 on the NSE after making a strong debut on the exchanges on Wednesday.
The stock opened at Rs 355 on the NSE, marking a premium of 49.8% or Rs 118 over its IPO price of Rs 237. On the BSE, it listed at Rs 350, reflecting a 47.7% gain. However, the initial gains were short-lived as investors booked profits.
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The Rs 460.43 crore IPO had received a strong response, with an overall subscription of 150.21 times. The issue included a fresh equity issuance worth Rs 400 crore and an offer for sale (OFS) of Rs 60.44 crore.
Investor interest was robust across categories—qualified institutional buyers (QIBs) subscribed 266.21 times, non-institutional investors 226.44 times, and retail investors 47.36 times.
What do analysts say?
'GNG Electronics made a solid market debut, largely in line with our expectations, reflecting robust investor enthusiasm,' said Prashanth Tapse, Senior VP (Research), Mehta Equities. 'The IPO witnessed strong demand across categories, particularly from QIBs and NIIs, underscoring confidence in the company's growth story.'
Tapse noted that post-listing valuations appear stretched, limiting near-term upside. 'Conservative investors should consider booking profits and capitalizing on the initial momentum. However, those with a higher risk appetite or long-term horizon may choose to hold, given the scalable business model and sectoral tailwinds.'
Shivani Nyati, Head of Wealth at
Swastika Investmart
, echoed the positive outlook but with caution: 'GNG Electronics Limited made a very strong debut with a listing gain of around 50%. The company offers refurbishing services for ICT devices globally and has shown steady growth. Investors are recommended to secure partial profits and retain the remainder with a stop-loss set at Rs 280.'
Company overview
GNG Electronics, operating under the 'Electronics Bazaar' brand, refurbishes and sells ICT devices through a vertically integrated model that includes sourcing, refurbishing, selling, and after-sales service. It also provides buyback and e-waste management services for clients such as Vijay Sales, HP, and Lenovo.
With operations spanning 38 countries and over 4,000 touchpoints, the company is expanding aggressively in the refurbished electronics space—a segment seeing strong demand amid price sensitivity and ESG-conscious procurement.
Financials and Outlook
For FY25, the company reported revenue of Rs 1,420 crore, up 24% from the previous year, while net profit rose 32% to Rs 69 crore. Despite concerns over stretched valuations, many see long-term potential due to its leadership position, global footprint, and participation in the circular electronics economy.
Anchor investors had pumped in Rs 138.13 crore before the issue opened, with interest from prominent domestic and global institutions.
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