GNG Electronics, a small-cap consumer electronics company, made headlines on Friday when its stock surged nearly 8% to a high of ₹455 during intraday trading. This surge was driven by a large block deal worth ₹175 crore, involving some of the most prominent names in the investment world, both in India and abroad. The market clearly reacted positively to the strong institutional interest shown in the company.
The entire transaction began when Vidhi S. Khandelwal, one of GNG Electronics’ promoters, decided to sell her stake in the company. According to stock exchange data, she sold 44.87 lakh shares at a price of ₹390 per share, bringing the total value of the deal to ₹175 crore. Strong institutional buying following such promoter selling is often considered a good sign, as it indicates that professional investors are willing to step in and absorb the supply.
This block deal attracted several prominent buyers. Domestically, Motilal Oswal Mutual Fund’s Equity Opportunities Fund Series II purchased 6.41 lakh shares. Other Indian mutual funds that participated included Mirae Asset Mutual Fund, ITI Mutual Fund, Edelweiss Mutual Fund, and Trust Mutual Fund. Internationally, Goldman Sachs Asia Equity Portfolio, Mobius Investment Trust PLC, and MCP Emerging Markets Fund LP also bought shares in the company, reflecting growing global confidence in GNG Electronics.
Motilal Oswal Financial Services recently initiated coverage on GNG Electronics with a positive outlook. The brokerage stated that the company has established a strong position in the global refurbished electronics market and is now considered one of the key players in this fast-growing space. According to the firm, GNG Electronics operates in approximately 46 countries, giving it a large international footprint that few Indian small-cap companies can match.
What sets GNG Electronics apart is its integrated business model. The company handles everything in-house, from sourcing used electronic equipment to refurbishing and distributing them. This end-to-end control has helped it serve a majority of institutional and business-to-business clients, which together account for approximately 95% of the company’s total revenue. This B2B-heavy model has also driven robust financial growth, with the company achieving a compound annual growth rate of approximately 43% between FY2023 and FY2026.
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