Globe Civil Projects, an integrated engineering, procurement, and construction (EPC) company headquartered in New Delhi, has launched its initial public offering (IPO) worth ₹119.00 Crores. The issue, which is entirely a fresh issue of 167.60 lakh equity shares, opened for public subscription on June 24, 2025, and will close on June 26, 2025. With a price band of ₹67 to ₹71 per share, the IPO is expected to draw significant attention from investors, especially considering its broad infrastructure footprint and steady financial growth.

The IPO listing is scheduled for Tuesday, July 01, 2025, on both the BSE and NSE, following allotment finalization on Friday, June 27, 2025. At the upper price band of ₹71, the market capitalization of Globe Civil Projects Limited is estimated to be around ₹424.00 Crores.

Retail investors can subscribe with a minimum lot size of 211 shares, requiring an investment of ₹14,981. For High-Net-Worth Individuals (HNIs), the minimum application is 14 lots (2,954 shares), which amounts to ₹2,09,734. The IPO is managed by MEFCOM CAPITAL MARKETS LIMITED as the Book Running Lead Manager, with KFIN TECHNOLOGIES LIMITED serving as the Registrar.

Company Overview and Project Footprint

Globe Civil Projects has successfully executed infrastructure projects across eleven Indian states, including Uttar Pradesh, Haryana, Delhi, Maharashtra, Andhra Pradesh, Karnataka, Gujarat, Chhattisgarh, Rajasthan, Uttarakhand, and Himachal Pradesh. The company’s projects span Transport and Logistics, Social and Commercial Infrastructure, and Non-Infrastructure segments such as commercial office spaces and residential housing. Its diversified expertise underpins its strong growth potential.

The company is promoted by Ved Prakash Khurana, Nipun Khurana, and Vipul Khurana, each bringing in nearly two decades of experience in the construction and EPC sector. Backed by a seasoned senior management team, Globe Civil Projects Limited has established a strong foothold in India’s infrastructure domain.

Financial Performance

The financials of Globe Civil Projects reflect consistent operational growth. The revenue from operations for:

• FY 2022 stood at ₹2,867.84 Million

• FY 2023 was ₹2,351.69 Million

• FY 2024 rose to ₹3,348.14 Million

• Nine-month period ending Dec 31, 2024 reported ₹2,567.37 Million

The EBITDA for the respective periods were:

• ₹239.84 Million (FY22)

• ₹226.22 Million (FY23)

• ₹473.05 Million (FY24)

• ₹413.78 Million (9MFY25)

Profit After Tax (PAT) figures are also encouraging:

• ₹52.01 Million (FY22)

• ₹48.51 Million (FY23)

• ₹153.78 Million (FY24)

• ₹177.89 Million (9MFY25)

The company exhibits strong return metrics with a Return on Capital Employed (ROCE) of 23.07%, Return on Equity (ROE) of 21.95%, and Return on Net Worth (RoNW) of 19.80% for FY24. Its annualised EPS is ₹3.97, and at the upper price band, the annualised P/E ratio stands at 17.88x, which is relatively in line with the industry P/E of 20x.

IPO Valuation and Pricing

Based on FY24 earnings, the pre-issue EPS is ₹3.58 and the post-issue EPS is expected to be ₹2.58. The pre-issue P/E ratio is 19.83x, while the post-issue P/E ratio is 27.57x. This indicates that the issue is fully priced, leaning slightly toward the higher valuation spectrum.

Grey Market Premium and Listing Expectation

As per the latest updates, the Grey Market Premium (GMP) of Globe Civil Projects IPO is trending at ₹9, indicating an expected listing price of ₹80, or 12.67% premium over the issue price. However, it's essential to note that GMP is speculative, based on unofficial market demand and supply, and does not represent real-time price discovery.

IPO Subscription Status

On the first day of subscription, as of 11:00 AM on June 24, 2025, the IPO was subscribed 1.25 times, suggesting a strong retail and institutional interest. The interest from investors is being seen as a positive indicator of confidence in the company's business model and future outlook.

Anchor Investors and Pre-IPO Placement

Globe Civil Projects successfully raised ₹35.69 Crores from Anchor Investors, by allocating 50,28,168 equity shares at the upper price band of ₹71 per share. This reflects robust institutional support and helps establish credibility in the public markets.

Utilization of IPO Proceeds

The objectives of the Globe Civil Projects IPO are clearly outlined and include:

1. ₹750.00 Million to be used for working capital requirements, ensuring seamless operations and timely project execution.

2. ₹142.55 Million will be allocated toward purchase of machinery and equipment, further strengthening operational capabilities.

3. The remaining amount will be used for general corporate purposes, allowing the company to maintain strategic flexibility.

These uses indicate a forward-looking investment approach, focusing on operational growth and efficiency enhancement.

Allotment and Listing Process

The IPO allotment date is scheduled for June 27, 2025. Investors can check their allotment status through the KFIN Technologies portal, using their PAN, application number, or DP Client ID.

Should You Subscribe?

Considering the strong financial track record, extensive project portfolio, and experienced promoters, Globe Civil Projects presents a compelling case for investment. However, given the valuation at the upper end of the P/E spectrum, it may be better suited for investors seeking listing gains rather than long-term value appreciation.

The IPO is rated as moderately risky, suitable for investors with a higher risk appetite. The Grey Market Premium suggests potential listing gains, but as always, investors are advised to do their own due diligence and consult financial advisors before making any investment decisions.

Final Thoughts

The Globe Civil Projects IPO offers a glimpse into India’s rapidly expanding infrastructure sector. With a healthy order book, solid financial growth, and a presence across key Indian states, the company is well positioned to leverage the momentum in public and private infrastructure investments.

While the IPO is fully priced, the positive GMP, anchor investor interest, and steady subscription numbers make it an attractive option for short-term gains. Retail and institutional investors eyeing a diversified EPC player with proven execution capabilities should consider subscribing after evaluating their own investment goals and risk appetite.

Disclaimer: The information provided here is for educational purposes only and should not be construed as investment advice. Readers are encouraged to conduct their own research and consult financial advisors before making any investment decisions. Investing in the securities market is subject to market risks.

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