GNG Electronics’ blockbuster initial public offering has left investors stunned as the oversubscription frenzy has pushed allotment probabilities to near-lottery levels. The IPO, which closed on July 25, attracted a staggering 42.14 lakh applications, signaling overwhelming interest from retail and high-net-worth investors alike.
The Mumbai-based electronics manufacturer raised a total of ₹460.44 crore through its public issue, with ₹400 crore from a fresh issue and the remainder through an offer-for-sale of 25.5 lakh equity shares. The price band was fixed at ₹225–₹237 per share, and each lot consisted of 63 shares.
According to data from the stock exchanges, the IPO received bids worth ₹49,744.28 crore against its net offering of ₹336.27 crore, translating to an overall subscription of 147.93 times. With such towering demand, market watchers say the allotment will come down to luck for most investors.
The breakdown of bids shows that the Qualified Institutional Buyers (QIBs) category was subscribed 266.21 times, with ₹253.93 lakh crore in bids. Non-Institutional Investors (NIIs), particularly Small and High Net-worth Individuals (SHNIs and BHNIs), submitted bids worth ₹16,452.80 crore, subscribing their category 227.67 times. The retail portion saw bids worth ₹7,898.46 crore, subscribed 46.84 times.
The allotment odds are even starker when broken down by investor segment. For retail investors, only one out of every four applicants is likely to receive a single lot of 63 shares, translating to a 2.78% probability. In the SHNI category, the odds are just 0.58%, meaning one in 173 investors may receive an allotment. For BHNIs, the probability slightly improves to 1.88%, with one in 53 applicants likely to secure shares.
Investors can expect the allotment status to be released by Tuesday, July 29. The company’s shares are scheduled to debut on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on Wednesday, July 30.
Despite the extreme oversubscription, enthusiasm for GNG Electronics remains strong in the grey market. As of the latest reports, the company’s grey market premium (GMP) stood firm at ₹100–₹105 per share, suggesting a potential listing gain of 42–44% over the issue price.
Brokerage firms have largely endorsed the IPO, advising clients to subscribe. Analysts cited GNG Electronics’ robust fundamentals, strong growth trajectory, and market positioning as key factors behind the massive investor interest.
The book-running lead managers for the IPO include Motilal Oswal Investment Advisors, IIFL Capital Services, and JM Financial, while Bigshare Services Pvt. Ltd. is acting as the registrar to the issue.
With the kind of demand seen for this offering, the IPO is being likened to a lucky draw, especially for small investors. For many hopefuls, all eyes are now on the allotment outcome next week and the stock’s much-anticipated debut on the bourses.
