GNG Electronics Completes Major IPO Fund Utilization for Debt Repayment and Corporate Purposes

2 min read Updated on 04 Nov 2025, 06:07 PM

Reviewed by

Riya DScanX News Team

Overview

GNG Electronics Limited has deployed Rs. 383.11 crore out of Rs. 400 crore raised through its IPO. The company allocated Rs. 320 crore for debt repayment, including Rs. 220 crore for its own debt and Rs. 100 crore for its subsidiary. Rs. 46.42 crore was used for general corporate purposes, and Rs. 16.69 crore for issue expenses. The remaining Rs. 16.89 crore is in fixed deposits. The company also increased its corporate guarantee to AED 20 million, enhanced credit facilities to Rs. 283.50 crore, approved a material related party transaction, and acquired new office space in Navi Mumbai.

*this image is generated using AI for illustrative purposes only.

GNG Electronics Limited has successfully utilized a significant portion of its Initial Public Offering (IPO) proceeds, marking a strategic move towards financial consolidation and growth. The company has deployed Rs. 383.11 crore out of the total Rs. 400 crore raised through its IPO, demonstrating efficient capital allocation across various objectives.

Debt Repayment

The company has prioritized debt reduction, allocating a substantial portion of the IPO funds towards this goal:

Particulars	Amount (Rs. Crore)
Debt repayment of the company	220.00
Debt repayment of material subsidiary (Electronics Bazaar FZC)	100.00
Total Debt Repayment	320.00

GNG Electronics repaid Rs. 220.00 crore of its own borrowings from various banks, including:

Axis Bank
DBS Bank
Federal Bank
HDFC Bank
ICICI Bank
IDFC First Bank
Kotak Mahindra Bank

Additionally, the company transferred Rs. 100.00 crore to its subsidiary, Electronics Bazaar FZC, for debt repayment. This included:

Rs. 72.45 crore to HDFC Bank
Rs. 11.99 crore for channel financing from RAK Bank
Rs. 15.54 crore for channel financing from Emirates International Bank

General Corporate Purposes and Issue Expenses

Particulars	Amount (Rs. Crore)
General Corporate Purposes	46.42
Issue Expenses	16.69
Total	63.11

The company utilized Rs. 46.42 crore for general corporate purposes, primarily for vendor payments towards raw materials. Issue expenses amounted to Rs. 16.69 crore.

Monitoring Agency Report

CARE Ratings Limited, serving as the monitoring agency, has reported no deviation from the stated objectives of the IPO fund utilization. Notably, all fund utilization was completed well ahead of the March 31, 2026 timeline initially set.

Remaining Proceeds

The balance of the IPO proceeds, amounting to Rs. 16.89 crore, has been deployed in fixed deposits with HDFC Bank, ensuring liquidity for future use.

Corporate Developments

In addition to the IPO fund utilization, GNG Electronics has made several strategic decisions:

Enhanced Corporate Guarantee: The company has increased its corporate guarantee from AED 10 million to AED 20 million in favor of Dubai Islamic Bank. This guarantee supports the banking financing facilities availed by Electronics Bazaar FZC, a material subsidiary of GNG Electronics.
Increased Credit Facilities: The Board has approved an enhancement of existing credit facilities from HDFC Bank Limited. The overall sanctioned limits have been increased from Rs. 149.50 crore to Rs. 283.50 crore, including an additional Standby Letter of Credit (SBLC).
Material Related Party Transaction: A material related party transaction with Electronics Bazaar FZC, involving sales of goods or services up to Rs. 300.00 crore, has been approved by the Board, subject to shareholder approval.
New Office Space: The company has entered into a leave and license agreement for additional office space in Navi Mumbai, spanning 23,842 sq. ft., for a period of 60 months.

These strategic moves, coupled with the efficient utilization of IPO proceeds, position GNG Electronics for potential improved financial stability in the coming years.

Historical Stock Returns for GNG Electronics