Globe Civil Projects Limited, a New Delhi-headquartered integrated EPC company, marked its stock market debut on July 01, 2025, with an impressive 28.31% listing premium. Shares were listed at ₹91.1 per share on the BSE, sharply above the issue price of ₹71, reflecting strong investor demand and optimism around the company’s infrastructure-led growth strategy.

The public issue, entirely a fresh issue worth ₹119 crore, consisted of 1.676 crore equity shares and was open for subscription between June 24 and June 26, 2025. The issue received overwhelming response with an 86.04 times oversubscription, underlining broad-based investor interest across retail, HNI, and institutional segments.

IPO Details & Listing Day Performance

• IPO Price Band: ₹67 to ₹71 per equity share

• Listing Price: ₹91.1 on BSE (28.31% premium)

• IPO Size: ₹119 crore (entirely fresh issue)

• Market Capitalization at IPO Price: ₹424 crore

• Minimum Lot Size: 211 shares

• Retail Minimum Investment: ₹14,981

• HNI Minimum Investment (14 lots): ₹2,09,734

• Registrar: KFIN Technologies Ltd

• Book Running Lead Manager: MEFCOM Capital Markets Ltd

Prior to listing, Anchor Investors subscribed to 50.28 lakh shares raising ₹35.69 crore at the upper end of the price band, strengthening market credibility and giving a positive push to the listing sentiment.

Grey Market Premium (GMP)

As of June 18, 2025, the Grey Market Premium (GMP) stood at ₹9, indicating modest market expectations. Despite the relatively low GMP, the actual listing exceeded grey market predictions, which is a testament to the company's fundamentals and long-term prospects.

Company Overview: Globe Civil Projects Limited

Founded over two decades ago, Globe Civil Projects Limited is a diversified Engineering, Procurement, and Construction (EPC) contractor involved in executing projects across Transport & Logistics, Social & Commercial Infrastructure, and Non-Infrastructure segments like housing and office construction.

The company operates across 11 Indian states, including Uttar Pradesh, Delhi, Maharashtra, Karnataka, Gujarat, Andhra Pradesh, and Rajasthan, with notable expertise in constructing:

• Educational Institutions

• Railway Infrastructure (including elevated stations and bridges)

• Hospitals

• Commercial complexes and offices

Beyond infrastructure execution, Globe Civil also engages in the trading of TMT steel bars, contributing additional revenue and establishing itself as a multifaceted EPC player.

The company has also executed MEP (Mechanical, Electrical & Plumbing) projects, HVAC works, and fire safety system installations. Its technical capabilities, experienced workforce, and modern project management tools position it well within India’s fast-evolving infrastructure ecosystem.

IPO Objectives

The company plans to utilize the IPO proceeds as follows:

1. ₹75 crore (₹750 million) – To meet working capital requirements

2. ₹14.26 crore (₹142.55 million) – For purchase of new machinery and equipment

3. Balance – For general corporate purposes

These objectives align with its strategy to scale operations, diversify regionally, and boost efficiency through machinery upgrades.

Industry Outlook: EPC Sector in India

EPC contracts (Engineering, Procurement & Construction) are turnkey solutions where the contractor assumes full responsibility for design, procurement, construction, and commissioning. The hands-off nature for developers and timeline/cost certainty make this model popular for government and PPP infrastructure projects.

In India, EPC contracts are commonly used for:

• Roads and highways

• Bridges and flyovers

• Institutional and social infrastructure

• Water supply and urban services

Government schemes like NIP (National Infrastructure Pipeline), PM Gati Shakti, and Bharatmala continue to drive demand for EPC contractors like Globe Civil.

Meanwhile, India’s TMT steel consumption, which is also part of Globe Civil’s trading business, is seeing sustained momentum, having grown to 41.73 million metric tonnes in FY24. The outlook remains positive with a projected 7% CAGR until FY2030, thanks to real estate expansion, affordable housing programs, and infrastructure projects.

Financial Overview

Globe Civil Projects has reported a robust financial trajectory:

• Revenue Growth (FY22–FY24): From ₹285.7 crore to ₹332.1 crore (CAGR 7.82%)

• Profit Before Tax: From ₹7.01 crore in FY22 to ₹20.98 crore in FY24 (CAGR 72.92%)

• As of March 31, 2025: The company employed 122 full-time staff

• Order Book: ₹669.10 crore, comprising 13 ongoing projects, and 2 LOIs

This reflects operational consistency, strong order visibility, and an ability to scale projects across diverse geographies and sectors.

Business Strengths

1. Proven Project Execution Track Record
   Delivered 37 projects successfully and executing 13 live projects, with multiple government-backed contracts and high compliance standards.

2. Strong Financials & Order Book
   Revenue, profit, and order pipeline show strong upward trends, enabling consistent cash flows and future growth.

3. Experienced Promoters & Leadership Team
   Led by Ved Prakash Khurana, Nipun Khurana, and Vipul Khurana, bringing over 19 years of cumulative sector experience.

4. Geographic Diversification & Segment Versatility
   Projects spread across North, South, and West India, with expertise spanning both social and commercial infrastructure.

5. EPC & TMT Steel Synergy
   EPC expertise supplemented by TMT trading, aiding better input cost controls and revenue diversification.

Business Strategies

1. Focus on Government Infrastructure Projects
   Bids actively on central and state-funded EPC projects in education, healthcare, and transport sectors.

2. Geographical Expansion
   Aims to increase presence in new states beyond current strongholds like Delhi, Uttar Pradesh, and Maharashtra.

3. Enhance Pre-Qualification Credentials
   Already classified as Class I Super Contractor by CPWD, capable of independently bidding on projects up to ₹650 crore.

4. Technology & Equipment Investment
   ₹14.26 crore allocated for machinery upgrades to ensure project timeliness and high-quality execution.

5. Pursue Joint Ventures & Alliances
   As of March 2025, the company is part of six joint ventures, expanding bidding and execution capabilities.

Risks & Concerns

1. Heavy Dependence on CPWD Projects
   57.48% of FY23 revenue came from CPWD. A slowdown in CPWD activity can impact revenue materially.

2. Geographical Revenue Concentration
   66.07% of revenue in 9M FY25 was from Delhi, UP, and Karnataka, exposing the company to regional disruptions.

3. Declining Bid Success Rate
   Award rate dropped from 54.55% in FY24 to 9.09% in the current fiscal’s nine-month period.

4. Joint Venture Dependency
   36.40% of recent revenues came via JVs. Performance of partners directly impacts delivery and profitability.

5. Exposure to Steel Trading Volatility
   Trading in TMT steel (14.92% of FY23 revenues) adds exposure to commodity price risk.

6. Regulatory and Bidding Risks
   Pre-qualification hurdles and changing government policies can limit bid eligibility and execution capacity.

7. Limited Regional Penetration
   While present in 11 states, dominance is skewed toward the north, potentially limiting national reach.

Conclusion

Globe Civil Projects Limited’s listing at a 28.31% premium to its IPO price signifies strong investor confidence in the company’s execution track record, diversified business model, and robust project pipeline.

Despite operating in a competitive and policy-sensitive EPC sector, its order book strength, revenue consistency, and strategic expansion plans make it a formidable player in India’s infrastructure growth story. With disciplined execution, timely bid wins, and efficient capital utilization from IPO proceeds, Globe Civil Projects is well-positioned to scale operations and deliver sustained returns to shareholders in the medium to long term.

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