Globe Civil Projects Limited is a prominent integrated engineering, procurement, and construction (EPC) company based in New Delhi, India. The company has a strong presence with completed projects spanning across eleven states including Uttar Pradesh, Haryana, Delhi, Maharashtra, Andhra Pradesh, Karnataka, Gujarat, Chhattisgarh, Rajasthan, Uttarakhand, and Himachal Pradesh. Their expertise covers a diverse portfolio of infrastructure, transport, logistics, social and commercial projects, as well as non-infrastructure developments such as commercial offices and housing.

IPO Overview

Globe Civil Projects is launching a Book Built Issue IPO amounting to ₹119.00 Crores, consisting entirely of a Fresh Issue of 167.60 lakh equity shares. The IPO subscription window will be open from June 24 to June 26, 2025. The allotment of shares is expected by June 27, 2025, with tentative listing scheduled for July 1, 2025 on both BSE and NSE stock exchanges.

The price band is fixed between ₹67 to ₹71 per equity share. At the upper band price of ₹71, the company's market capitalization at IPO will be approximately ₹424 Crores. Investors need to apply for a minimum lot size of 211 shares, translating to a minimum retail investment of ₹14,981. High-Net-Worth Individuals (HNIs) must apply for at least 14 lots (2,954 shares), worth around ₹2,09,734.

Subscription and Application

The IPO will be managed by MEFCOM CAPITAL MARKETS LIMITED as the Book Running Lead Manager, while KFIN TECHNOLOGIES LIMITED will serve as the registrar.

Grey Market Premium (GMP) and Listing Gains

Currently, the Grey Market Premium for Globe Civil Projects IPO stands at ₹9 per share, indicating an expected listing gain of around 12.67% over the upper price band. However, GMP is not an official market indicator and depends on demand-supply dynamics in informal markets, which are not regulated. Investors are advised to treat GMP information for educational purposes only.

How to Check IPO Allotment Status

The IPO allotment will be available online from June 27, 2025. To check the allotment status, investors can visit the registrar’s website, select Globe Civil Projects IPO from the dropdown, and enter their application number, PAN, or DP Client ID.

Financial Performance and Growth

Globe Civil Projects has shown consistent revenue growth with revenues for FY2024 standing at ₹3,348.14 Million, compared to ₹2,351.69 Million in FY2023. EBITDA increased substantially to ₹473.05 Million in FY2024 from ₹226.22 Million in FY2023, demonstrating improved operational efficiency. Profit after tax rose to ₹153.78 Million in FY2024 from ₹48.51 Million in FY2023.

Key financial ratios indicate the company’s valuation at a pre-issue EPS of ₹3.58 and a post-issue EPS of ₹2.58. The pre-issue Price to Earnings (P/E) ratio is 19.83x while the post-issue P/E stands at 27.57x, compared to the industry average P/E of 20x. Return on Capital Employed (ROCE) is a robust 23.07%, with Return on Equity (ROE) at 21.95% and Return on Net Worth (RoNW) at 19.80%.

IPO Objectives

The company plans to utilize the IPO proceeds as follows:

1. ₹75 Crores for working capital requirements.

2. ₹14.25 Crores for capital expenditure including purchase of equipment and machinery.

3. The remaining funds will be used for general corporate purposes.

Promoters and Management

Promoted by Ved Prakash Khurana, Nipun Khurana, and Vipul Khurana, the promoter group brings nearly two decades of experience in the construction and infrastructure sector. Supported by a seasoned management team, they drive strategic planning and business growth.

Investment Outlook

Given the company's steady financial growth, strong management background, and attractive GMP indicating potential listing gains, the IPO is positioned as a viable option for investors willing to take moderate risk. However, the post-issue P/E ratio above the industry average suggests the IPO is priced on the higher side. Risk-averse investors should exercise caution and consider professional financial advice before investing.

Disclaimer:
This article is for informational and educational purposes only and does not constitute financial advice or a solicitation to buy or sell securities. Investors should perform due diligence and consult their financial advisors before making investment decisions. Grey Market Premium (GMP) values are unofficial and should be considered only as indicative. The company and its promoters do not guarantee any returns. All investments are subject to market risks.

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