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:

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

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:

1. 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.

2. 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).

3. 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.

4. 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.

GNG Electronics Limited has announced several key decisions following its board meeting on November 4, 2025, including significant enhancements to its credit facilities, a material related party transaction, and the release of its Q2 financial results.

Credit Facility Enhancement

The board has approved an increase in the existing credit facilities from HDFC Bank Limited. The details are as follows:

This substantial increase in credit facilities may provide GNG Electronics with greater financial flexibility for its operations and growth initiatives.

Material Related Party Transaction

The board has approved a material related party transaction with its subsidiary, Electronics Bazaar FZC. The transaction involves:

• Nature of Transaction: Sales of goods or services
• Maximum Value: Up to ₹300 Crore

This transaction is subject to shareholder approval and is classified as material under Regulation 23 of SEBI (LODR) Regulations, 2015.

Corporate Guarantee Enhancement

GNG Electronics has also approved an increase in its corporate guarantee for its material subsidiary, Electronics Bazaar (FZC):

• Previous Guarantee: AED 10 million
• New Guarantee: AED 20 million
• Beneficiary: Dubai Islamic Bank

This enhancement is to secure the banking financing facilities availed by Electronics Bazaar (FZC).

Other Key Decisions

1. ESOP Scheme Ratification: The board has approved the ratification of the PRE-IPO ESOP Scheme 'Electronics Bazaar Employees Stock Option Scheme – 2024', subject to shareholder approval.

2. Internal Auditor Appointment: Ms. Ashita Pandya, Head of Accounts – India, has been appointed as the Internal Auditor for the financial year 2025-2026.

3. Lease Agreement: The company has approved taking premises on lease from Raheja Universal (Pvt.) Limited. The lease covers 23,842 sq. ft. of carpet area in the IT Incubation Centre, Raheja District, Navi Mumbai, for a period of 60 months from November 1, 2025, to October 31, 2030.

Q2 Financial Results

GNG Electronics reported strong financial performance for the second quarter:

• Consolidated Net Profit: ₹326.60 million, up from ₹185.20 million in the same period last year, representing a 76% increase.
• Revenue: Increased to ₹4.40 billion from ₹3.12 billion year-over-year.
• EBITDA: Rose to ₹465.40 million compared to ₹323.10 million previously.
• EBITDA Margin: Improved slightly to 10.58% from 10.35% in the corresponding quarter last year.

These decisions and financial results reflect GNG Electronics' efforts to strengthen its financial position, improve corporate governance, and expand its operational capabilities.