The initial public offering (IPO) of GNG Electronics has seen robust demand from both retail and non-institutional investors on its first day of bidding. The IPO, which opened today and is set to close on Friday, July 25, was fully subscribed just hours after the bidding began.
The IPO received bids for 12.75 crore shares against the total offer of 1.38 crore shares, resulting in an overall subscription of 9.20 times by the end of Day 1, according to exchange data.
Retail investors showed strong interest, with their portion subscribed to 9.31 times, while non-institutional buyers showed even greater enthusiasm, with their portion booked 18.86 times. The QIB portion was booked at 1.68 times.
GNG Electronics aims to raise ₹460.43 crore through the IPO, which includes a mix of fresh equity shares and an offer for sale. The price band for the offer is set between ₹225 and ₹237 per equity share, with a face value of ₹2 each. The IPO lot size is fixed at 63 shares, requiring a minimum investment of ₹14,931 for retail investors.
The allotment for the IPO is expected to be finalized on Monday, July 28, 2024. The shares are scheduled to list on both the NSE and BSE, with a tentative listing date of Wednesday, July 30. Motilal Oswal Investment Advisors Limited is the book-running lead manager of the GNG Electronics IPO, while Bigshare Services Pvt Ltd is the registrar for the issue.
GMP signals over 43% premium
As of today, the grey market premium (GMP) for GNG Electronics’ IPO stands at ₹104 per share. This suggests that the shares are anticipated to list at ₹104 above their issue price. With this GMP and the IPO’s upper price band, the estimated listing price of the shares would be ₹341, reflecting a 43.88% premium over the issue price of ₹237 per share.
The grey market premium represents the expected difference between an IPO’s issue price and its anticipated listing price in the unofficial market. However, it’s important to remember that GMP is a preliminary indicator and should not be the sole factor in making investment decisions.
About GNG Electronics
Incorporated in 2006, GNG Electronics Limited offers refurbishing services for laptops, desktops, and ICT devices, both globally and in India. The company has a significant presence across India, the USA, Europe, Africa, and the UAE.
The company operates under the brand “Electronics Bazaar,” offering sourcing to refurbishment to sales to after-sale services and providing warranty. It offers other value-added services such as ITAD and e-waste management services, warranties, doorstep service, on-site installation, flexible pay options, easy upgrades, assured buyback programs, and buyback programs for refurbished ICT devices.
GNG Electronics provides tailored buyback solutions for laptops and desktops to help large-format retail stores such as Vijay Sales (India) Private Limited (“Vijay Sales”) and OEM brand stores such as HP India Sales Private Limited (“HP”) and Lenovo Global Technology (India) Private Limited (“Lenovo”) to run efficient, customer-friendly buyback programs facilitating the sale of new devices.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
