Globe Civil Projects Limited, a construction and infrastructure company with over two decades of industry experience, is all set to launch its Initial Public Offering (IPO) on Tuesday, June 25, 2025, via the NSE SME platform. The IPO has generated attention in the market, supported by promising Grey Market Premium (GMP) trends, hinting at strong investor sentiment.

This SME IPO aims to raise fresh capital through a pure fresh issue of equity shares, with the proceeds targeted for business expansion and operational enhancement.

IPO Details

• IPO Open Date: June 25, 2025

• IPO Close Date: June 27, 2025

• IPO Type: Book Built Issue (SME)

• Issue Size: ₹15.18 crore (approx)

• Price Band: ₹50 to ₹52 per share (expected)

• Face Value: ₹10 per share

• Lot Size: 2,000 shares

• Minimum Investment: ₹1,04,000 for retail investors

• Listing Platform: NSE SME

• Registrar: KFin Technologies Ltd

• Lead Manager: Inventure Merchant Banker Services Pvt Ltd

• Market Maker: NNM Securities Pvt Ltd

The IPO comprises a fresh issue of 29.2 lakh shares, with no Offer for Sale (OFS), indicating promoter commitment and capital infusion directly into company operations.

About Globe Civil Projects

Established in 2000, Globe Civil Projects Limited operates in the engineering, procurement, and construction (EPC) domain, particularly in civil infrastructure, industrial construction, and public sector development.

Key service areas include:

• Construction of roads, bridges, and culverts

• Water supply systems and stormwater drains

• Industrial and commercial buildings

• Government and PSU infrastructure works

The company has completed over 50 mid-to-large projects for government departments, real estate developers, and private industrial players, with ongoing projects across Maharashtra, Gujarat, and Madhya Pradesh.

Financial Performance Snapshot

Globe Civil Projects has shown robust growth in top-line and bottom-line figures:

• Revenue (FY24): ₹43.75 crore

• Profit After Tax (FY24): ₹4.26 crore

• EBITDA Margin: ~14%

• Net Profit Margin: ~9.7%

• ROE: 21.2%

• ROCE: 19.5%

• Debt-to-Equity: 0.48 (expected to reduce further post-IPO)

The strong profit margins and efficient working capital cycle make the company attractive for investors looking at SME infrastructure plays.

GMP and Market Sentiment

As of June 22, market observers report a Grey Market Premium (GMP) of approximately ₹10–₹12 per share, suggesting a potential listing gain of 18–22% over the upper price band of ₹52.

This upbeat GMP is driven by:

• Investor appetite for civil infrastructure SMEs

• Healthy financial ratios and low leverage

• Government push for infra development in Tier-2 cities

However, investors should treat GMP data as indicative only, as these are unofficial and change frequently based on demand and sentiment.

Peer Comparison

Globe Civil Projects may be benchmarked against other SME infrastructure firms like:

• Quality RO Industries

• Sai Silks (if infra segment included)

• SGL Infra

Though smaller in scale, Globe’s specialisation in civil EPC contracts and solid order book position it well among listed SME peers.

Objectives of the Issue

The company intends to use the IPO proceeds for:

• Working capital augmentation for ongoing and new projects

• Purchase of construction machinery and tools

• Upgradation of project management systems and software

• General corporate purposes including team expansion

Globe Civil Projects also plans to participate in more government tenders and PSU infra development initiatives after capital infusion.

Risk Factors

While the company is fundamentally sound, some risks to consider include:

• High dependency on government and public sector clients

• Execution delays due to approvals, weather, or raw material cost volatility

• SME market volatility impacting listing performance

Nonetheless, its track record, experienced management, and scalable business model give it an edge in securing future EPC contracts.

Conclusion

The Globe Civil Projects IPO presents a promising opportunity for investors looking to capitalise on India’s expanding infrastructure sector via a well-managed SME player. With steady financials, government-focused order pipeline, and positive GMP, the IPO has generated buzz in the market.

Recommendation: Suitable for investors with a medium-term horizon looking for infrastructure sector exposure in the SME segment. Watch subscription figures closely for final entry decision.

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 Abram Food, PRO FX Tech, Suntech Infra Solutions, Shri Hare-Krishna Sponge Iron, Icon Facilitators, Ace Alpha Tech, Globe Civil Projects, Sambhav Steel Tubes, Ellenbarrie Indutrial Gases, Kalpataru, HDB Financials, AJC Jewel.

The Current active IPO are  Aakaar Medical Technologies, Safe Enterprises Retail Fixtures, Mayasheel Ventures, ArisInfra Solutions, Influx Healthtech.

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