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Goldman Sachs picks stake in GNG Electronics via Rs 175 crore block deal

Created at 11 Jun · 2:45 PM1 source↑ Market-relevant
IN SHORT

Goldman Sachs Asia Equity Portfolio was among the buyers in a Rs 175 crore block deal for GNG Electronics. Promoter Vidhi Khandelwal sold shares to domestic mutual funds and foreign investors, reflecting confidence in the refurbished electronics market.

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Key Numbers

Rs 175 croreblock deal value
44.87 lakhshares sold by promoter
Rs 390per share price
6.41 lakhshares acquired by Motilal Oswal Equity Opportunities Fund Series II
43%volume CAGR (FY23-FY26) for GNG Electronics
95%revenue from institutional and B2B channels
26%expected revenue CAGR (FY26-FY28)
31%expected EBITDA CAGR (FY26-FY28)
36%expected profit CAGR (FY26-FY28)

Who's Involved

Vidhi Khandelwal
Promoter who sold shares in GNG Electronics
GNG Electronics
Refurbished electronics company
Goldman Sachs Asia Equity Portfolio
Institutional investor that acquired GNG Electronics shares
Motilal Oswal Equity Opportunities Fund Series II
Institutional investor that acquired GNG Electronics shares
Mirae Asset Mutual Fund
Institutional investor that acquired GNG Electronics shares
ITI Mutual Fund
Institutional investor that acquired GNG Electronics shares
Edelweiss Mutual Fund
Institutional investor that acquired GNG Electronics shares
Trust Mutual Fund
Institutional investor that acquired GNG Electronics shares
Mobius Investment Trust Plc
Institutional investor that acquired GNG Electronics shares
MCP Emerging Markets Fund LP
Institutional investor that acquired GNG Electronics shares
Motilal Oswal
Brokerage that initiated coverage on GNG Electronics

↳ Why This Matters

The significant block deal and institutional buying signal strong investor confidence in GNG Electronics' growth prospects within the expanding refurbished electronics market, potentially impacting its stock performance and market position.

Key facts

  • GNG Electronics saw a Rs 175 crore block deal on Thursday.
  • Promoter Vidhi Khandelwal sold 44.87 lakh shares at Rs 390 each.
  • Domestic mutual funds and foreign investors were the buyers.
  • Goldman Sachs Asia Equity Portfolio, Mirae Asset Mutual Fund, and Motilal Oswal Equity Opportunities Fund Series II were among the institutional buyers.
  • Motilal Oswal initiated coverage with a positive outlook on GNG Electronics.

GNG Electronics experienced a block deal worth approximately Rs 175 crore on Thursday, with promoter Vidhi Khandelwal selling 44.87 lakh shares at Rs 390 per share. The transaction saw participation from multiple domestic mutual funds and foreign investors, including Goldman Sachs Asia Equity Portfolio, Mirae Asset Mutual Fund, and Motilal Oswal Equity Opportunities Fund Series II.

Motilal Oswal recently initiated coverage on GNG Electronics with a positive outlook, citing its leadership in the global refurbished electronics market. The brokerage highlighted the company's scaled refurbishment platform across 46 countries, with nearly 95% of revenue from institutional and B2B channels. Motilal Oswal projects a volume CAGR of around 43% between FY23 and FY26, driven by the structural growth of the refurbished personal computer market.

The brokerage anticipates GNG Electronics will achieve a 26% revenue CAGR, 31% EBITDA CAGR, and 36% profit CAGR between FY26 and FY28. This growth is expected to be fueled by increasing volumes, margin expansion, improved recovery economics, and reduced financing costs. GNG Electronics operates under the brand "Electronics Bazaar" and is a significant player in the refurbished ICT devices market.

Frequently asked questions

The block deal for GNG Electronics was valued at approximately Rs 175 crore.

Promoter Vidhi Khandelwal sold 44.87 lakh shares of GNG Electronics.

Participating investors included Goldman Sachs Asia Equity Portfolio, Mirae Asset Mutual Fund, ITI Mutual Fund, Edelweiss Mutual Fund, Trust Mutual Fund, Motilal Oswal Equity Opportunities Fund Series II, Mobius Investment Trust Plc, and MCP Emerging Markets Fund LP.

GNG Electronics operates in the refurbished electronics market, particularly focusing on personal computers and ICT devices, serving institutional and B2B clients globally.

What Happens Next

01Monitor GNG Electronics' future financial performance and market share growth.
02Observe further analyst ratings and price targets for GNG Electronics.

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How It Developed

Promoter Vidhi Khandelwal sold 44.87 lakh shares of GNG Electronics.
The block deal was valued at approximately Rs 175 crore.
Multiple domestic mutual funds and foreign investors acquired shares.
Goldman Sachs Asia Equity Portfolio was among the buyers.
Motilal Oswal Equity Opportunities Fund Series II acquired 6.41 lakh shares.
Mirae Asset Mutual Fund, ITI Mutual Fund, Edelweiss Mutual Fund, Trust Mutual Fund, Mobius Investment Trust Plc, and MCP Emerging Markets Fund LP also participated.

Sources

T1
Block deal: Goldman Sachs picks stake in this smallcap stock that surged 50% in 6 monthsThe Economic Times

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