GNG Elect makes smart debut

GNG Electronics made a very strong debut today; from its IPO price of Rs.237, it opened on the BSE at Rs.350 and rose further to Rs.364 and is now trading at Rs.330 levels.

The IPO had met with great response, subscribing 147x with QIBs booking the maximum at 266x.

The company is a 19 year old, Mumbai-based refurbisher of electronic devices like laptops, desktops etc., having 5 facilities in India, UAE and USA. International geography accounts for 75% of Rs. 1,411 cr topline, with 95% sales being on B2B basis and only 5% B2C, from electronicsbazaar.com.

Our conclusion in the IPO Analysis - GNG Electronics’ business model does not instil confidence, nor is the IPO pricing attractive. Hence ‘avoid’ it.