PUNE: GNG Electronics Limited, India’s largest refurbisher of laptops and desktops and among the largest refurbishers of ICT Devices overall, both globally and in India with significant presence across India, USA, Europe, Africa and UAE, in terms of value, as of March 31, 2024, has filed its Draft Red Herring Prospectus (“DRHP”) with market regulator Securities and Exchange Board of India (“SEBI”).
The IPO comprises a fresh issue of equity shares of face value of ₹2 each aggregating up to ₹ 825 Crores and an offer for sale of up to 9,700,000 equity shares of face value of ₹2 each. The offer for sale comprises up to 35,000 equity shares by Sharad Khandelwal, up to 35,000 equity shares by Vidhi Sharad Khandelwal, and up to 9,630,000 equity shares by Amiable Electronics Private Limited.
GNG Electronics Limited operates under the brand “Electronics Bazaar”, with a presence across the full refurbishment value chain i.e., from sourcing to refurbishment to sales to after-sale services and providing a warranty. The company’s comprehensive process of refurbishment of ICT Devices such as laptops, desktops, tablets, servers, premium smartphones, mobile workstations, and accessories ensures that such devices are similar to new in terms of both performance and aesthetics and able to offer laptops at one-third price of new devices and other devices like desktops, tablets, servers, premium smartphones, mobile workstations and accessories at 35-50% price of new devices. The company follows a repair-over-replacement approach, which provides cost advantages and helps achieve true sustainability by reducing carbon footprint.
The company is one of the few companies that pioneered the concept of warranty for the refurbished ICT Devices to provide comfort and trust to our customers and are still offering industry-leading warranty terms. They are India’s largest Microsoft Authorised Refurbisher, in terms of refurbishing capability, as of Fiscal 2024. They are also the IT asset disposal partner for India’s second-largest software company, in terms of market capitalization as of Calendar Year 2024, procuring their used IT asset. The company is a certified refurbishment partner with Lenovo and HP, which are the top two global brands, in terms of market share of 24% and 21%, respectively, as of CY 2023.
The company offers a wide range of stock-keeping units and as of September 30, 2024, the portfolio included 4,996 SKUs. They have a sales network with refurbished ICT Devices being sold in 35 countries as of September 30, 2024. The multi-channel global procurement network of 447 suppliers is supported by an extensive procurement network in India and across the globe. The procurement network comprises corporates, consulting companies, intermediaries, recyclers, refurbishment partners, educational institutes, leasing companies, NBFCs, large format retail stores, and OEM brand stores, as of September 30, 2024. Some of our procurement partners, among other prominent names, include USA-based Iron Mountain and Apto Solutions Inc; Australia-based Green Box Group Pty Ltd and Renew IT Pty Ltd; HP, Lenovo, Microsoft, Tata Capital Limited, and Steller Information Technology Private Limited (BitRaser). They have 3,265 customers as of September 30, 2024.
The operations are spread across 35 countries in North America, South America, Asia, Asia Pacific, Europe, Africa, and the Middle East, as of September 30, 2024, supported by five refurbishing facilities located across India, USA, and UAE with one facility in Navi Mumbai, Maharashtra, India, one facility in Dallas, Texas, USA and three facilities in Sharjah, UAE, aggregating to 58,127.82 sq. ft. Our facilities are strategically located to cater to regional markets while maintaining a global reach across India, Middle East, Europe, Africa and USA. It also helps reduce freight costs, optimize delivery time, and increase operational efficiency.
Motilal Oswal Investment Advisors Limited, IIFL Capital Services Limited (formerly known as IIFL Securities Limited), and JM Financial Limited are the Book Running Lead Managers to the issue.
