GNG Electronics Ltd IPO

Indias largest refurbisher of laptops and desktops and among the largest refurbishers of ICT devices overall, both globallyand in India.

We are a company with domestic and international operations with five refurbishing facilities across India, USA and UAE.

Strong global supply chain, established sourcing base with long tail of vendors and wide customer base.

Well - established refurbishing capabilities and state - of - art infrastructure, with focus on quality.

Well positioned to harness global shift to sustainability and growing focus on ESG.

Experienced management team and qualified personnel with significant industry experience.

Track record of profitability and consistent financial performance.

As of Fiscal 2025, Fiscal 2024 and Fiscal 2023, the company derived 75.59%, 67.87% and 79.97%, respectively, of itsoperational revenue from only sales of laptops and therefore its continued success is necessary for its businessand prospects. Any decline in the demand for such product may have an adverse impact on the company business, revenueand profitability.

Increase in the prices of parts and materials essential for its operations may negatively impact the company business andfinancial performance. Furthermore, its ability to procure these parts and materials may be affected by pricefluctuations in the future.

The company has substantial indebtedness which requires significant cash flows to service and limits its ability to operatesfreely. Its debt servicing coverage ratio for Fiscal 2025, Fiscal 2024 and Fiscal 2023 was 0.25 times, 0.25 timesand 0.40 times, respectively. Any breach of terms under the company financing arrangements or its inability to meet the companyobligations, including financial and other covenants under its debt financing arrangements may adversely affectthe company business and financial condition.

The company revenue generated from outside India accounts for a significant portion of its revenue from operations. As ofFiscal 2025, Fiscal 2024 and Fiscal 2023, the company derived 75.53%, 57.97% and 50.53%, respectively, of its revenuefrom outside India. Any failure to manage the company business in overseas markets or its inability to grow the company businessin new geographic markets may affect its growth, which may have a material adverse effect on the company business,operations, prospects or financial condition.

A substantial portion of its revenues is dependent on the company top 10 customers. During Fiscals 2025, 2024 and 2023the companu derived 46.59%, 55.77% and 44.14%, respectively of its total revenue from operations from the company top 10customers. The loss of any of these customers may adversely affect the company revenues and profitability.

The company depends on a limited number of suppliers for its inventory. Any interruption in the availability of inventory mayadversely impact its operations. Further, any failures by the company suppliers to provide inventory to it on time or at all,or as per the company specifications and quality standards may have an adverse impact on its ability to meet the company deliveryschedules.

A significant part of its total revenue from operations i.e. 66.66%, 49.59% and 50.28% in Fiscal 2025, Fiscal 2024and Fiscal 2023, respectively were through the company Material Subsidiary, Electronics Bazaar FZC. (EB FZC), andthe company is dependent on the operating income and cash flows generated by EB FZC. Any loss or reduction in thebusiness attributable to its EB FZC, or a change in the company shareholding in EB FZC, could have a material adverseeffect on its business, prospects, results of operations, cash flows and financial condition.

The Companys positive cash flow from operating activities is significantly influenced by changes in working capitalloans. A reduction in the availability or utilization of these loans could adversely affect the Companys operationalcash flow and its ability to manage working capital requirements.

The company has experienced reduction in its business-to-consumer (B2C) sales in Fiscal 2025, Fiscal 2024 and Fiscal2023.

The company has in the past entered into related party transactions and may continue to do so in the future, which maypotentially involve conflicts of interest with the equity shareholders.