Globe Civil Projects Limited, a Hyderabad-based infrastructure and construction services company, is set to launch its Initial Public Offering (IPO) on June 26, 2025. The issue is a 100% fresh equity offering, raising ₹43.15 crore, and will be listed on the NSE SME platform.

Globe Civil Projects IPO Details

About Globe Civil Projects Limited

Incorporated in 2010, Globe Civil Projects Limited specialises in civil construction, water supply and sewerage systems, and urban infrastructure development. The company caters to various government departments including Municipal Corporations, Public Health Engineering Departments (PHED), and Irrigation Boards.

Key Services:

• Construction of roads, bridges, and drain networks

• Urban pipeline installation and water treatment plants

• Stormwater and sewerage management systems

• Industrial and institutional civil works

Presence: Operating primarily in Telangana, Andhra Pradesh, Karnataka and Maharashtra through direct contracts and sub-contracts.

Use of IPO Proceeds

The IPO proceeds will be utilised for:

1. Working Capital Requirements – fund site execution and vendor payments

2. Equipment Purchase – for in-house construction capability

3. General Corporate Purposes – HR, admin, and tech upgrades

4. Public Issue Expenses – IPO and compliance-related costs

Company Financials

Key Ratios (FY24):

• EPS (Pre-Issue): ₹7.01

• EPS (Post-Issue): ₹4.11

• P/E Ratio (Post-Issue): 17.03x

• ROE: 24.46%

• ROCE: 31.68%

• Debt/Equity: 0.52

The company has shown healthy revenue and profit growth, with consistent margin improvement over the last three years.

Promoters and Management

• Mr. K. Venkata Reddy – Chairman and Managing Director with over 30 years of industry experience

• Mr. Pradeep Kumar Reddy – Executive Director handling site execution and compliance

• Mr. Mahesh Reddy – CFO with strong financial planning and budgeting expertise

The management team’s long-standing experience in government tendering and infrastructure execution supports sustainable growth.

Industry Overview

India’s construction sector is poised for 7–8% annual growth, driven by:

• Government push on infrastructure and smart cities

• PM Gati Shakti and Jal Jeevan Mission

• Urbanisation and regional development initiatives

• Increased budget allocation for municipal civil works and water supply projects

SME contractors like Globe Civil Projects stand to benefit from targeted contracts in regional zones.

Grey Market Premium (GMP)

As of June 19, 2025, Grey Market Premium (GMP) is reported at ₹4–₹5, indicating possible listing gains of 5–7%. However, GMP is an unofficial, speculative figure and should not be the sole basis of investment.

IPO Strengths

• Strong order book from repeat government clients

• Healthy return ratios and improving profitability

• No legacy debt issues; conservative capital structure

• Experienced promoters and consistent project execution track record

IPO Risks

• High dependency on government contracts and tenders

• Regional concentration increases execution risk in limited geographies

• SME IPOs typically have low post-listing liquidity

• Delay in fund disbursal from public sector clients can strain working capital

Peer Comparison

There are limited direct SME peers listed. However, compared to similar civil contractors, the IPO appears moderately priced.

Disclaimer:
This article is for educational and informational purposes only and does not constitute financial advice. Investment decisions should be based on individual risk tolerance and consultation with SEBI-registered advisors. Market conditions are volatile and subject to change. Neither the author nor the platform is responsible for losses arising from use of this information.

The Upcoming IPOs in this week and coming weeks are Suntech Infra Solutions, Shri Hare-Krishna Sponge Iron, Icon Facilitators, Ace Alpha Tech, Aakaar Medical Technologies, Safe Enterprises Retail Fixtures, Globe Civil Projects, Sambhav Steel Tubes, Ellenbarrie Indutrial Gases, Kalpataru, HDB Financials, AJC Jewel, Mayasheel Ventures.

The Current active IPO are  ArisInfra Solutions, Influx Healthtech, Eppeltone Engineers.

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