Globe Civil Projects Limited, a New Delhi-based EPC (Engineering, Procurement and Construction) company, concluded its IPO with a whopping 86.04 times subscription by the end of the bidding period on June 26, 2025. With a robust grey market premium (GMP) of ₹9, the stock is expected to deliver approximately 12.67% listing gains, making it one of the most exciting public issues in the infrastructure space this quarter.

Company Overview: Civil Engineering Excellence Across 11 States

Globe Civil Projects is engaged in the execution of infrastructure and non-infrastructure projects, with expertise spanning:

• Transport and Logistics (roads, highways, flyovers)

• Social and Commercial infrastructure (buildings, institutions)

• Non-infrastructure construction (residential, commercial real estate)

The company operates across 11 states including Delhi, Maharashtra, Gujarat, Rajasthan, and Karnataka, demonstrating wide geographical coverage and project diversity.

IPO Structure and Key Investment Details

The IPO is a Book Built Issue of ₹119 crore, consisting entirely of a fresh issue of 167.60 lakh shares.

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

• IPO Lot Size: 211 shares per lot

• Retail Investment Minimum: ₹14,981

• HNI Minimum Investment: 14 lots (2,954 shares) = ₹2,09,734

• Market Cap at Upper Band: ₹424 crore

• Registrar: KFIN Technologies Limited

• Lead Manager: MEFCOM Capital Markets Ltd

• Tentative Listing Date: July 01, 2025, on BSE and NSE

Anchor Investor Participation

On June 24, 2025, the company raised ₹35.69 crore from anchor investors, allocating 50,28,168 equity shares at ₹71 per share. This move gave the IPO a strong initial footing, attracting further institutional and retail demand.

IPO Subscription Details: Massive Demand on Final Day

As of 7:00 PM on June 26, 2025, the IPO saw subscription levels of 86.04 times, making it one of the most oversubscribed issues in the infrastructure sector for the year.

• Retail Portion: Heavily oversubscribed

• NII and QIB Portion: Substantial interest, driven by fundamentals and project visibility

• Anchor Book: Strong allocation with trusted institutional players

Grey Market Premium (GMP): What Does ₹9 Suggest?

The grey market premium of ₹9 over the issue price of ₹71 indicates a potential listing price of ₹80. This translates into a 12.67% listing gain, making it attractive for short-term traders.

Note: GMP is speculative and unofficial. It reflects sentiment but not guaranteed performance.

Allotment and Listing Timeline

• IPO Closed: June 26, 2025

• Allotment Finalisation: June 27, 2025

• Listing Date (Tentative): July 01, 2025

• Exchanges: BSE and NSE

How to check Allotment:

1. Go to the KFin Technologies Allotment Page

2. Select “Globe Civil Projects IPO” from the dropdown

3. Enter PAN, Application Number, or DP Client ID

4. Click Submit to view status

Use of IPO Proceeds

The proceeds of the IPO are aimed to strengthen the balance sheet and expand project execution capacity:

• Working Capital Requirements

• Capital Expenditure and Equipment Procurement

• General Corporate Purposes

This ensures the company remains debt-light and operationally agile, especially as public infrastructure spending grows.

Financial Highlights: Strong Momentum Over the Years

Revenue from Operations:

• FY22: ₹2,867.84 million

• FY23: ₹2,351.69 million

• FY24: ₹3,348.14 million

• 9M FY25 (Dec 31): ₹2,567.37 million

EBITDA:

• FY22: ₹239.84 million

• FY23: ₹226.22 million

• FY24: ₹473.05 million

• 9M FY25: ₹413.78 million

Profit After Tax (PAT):

• FY22: ₹52.01 million

• FY23: ₹48.51 million

• FY24: ₹153.78 million

• 9M FY25: ₹177.89 million

Insight: The steady rise in EBITDA and PAT reflects operational efficiency and strong project pipeline execution.

Valuation and Return Ratios: Fully Priced But Justified

Based on FY24 numbers:

• Pre-Issue EPS: ₹3.58

• Post-Issue EPS: ₹2.58

• Pre-Issue P/E: 19.83x

• Post-Issue P/E: 27.57x

• Industry Average P/E: 20x

• Annualised EPS: ₹3.97

• Annualised P/E: 17.88x

Key Return Ratios:

• ROCE: 23.07%

• ROE: 21.95%

• RoNW: 19.80%

These metrics suggest that the issue is fully priced, but supported by strong financial fundamentals and operational efficiency.

Should You Invest Post-IPO?

For short-term investors, the GMP indicates moderate listing gains. The company’s wide state presence, project diversity, and financial growth make it appealing to medium-term investors as well.

However, the post-issue P/E ratio is on the higher side, so risk-averse investors should wait for a better entry post-listing, depending on market performance.

Final Thoughts:

The Globe Civil Projects IPO offers a blend of growth visibility, infrastructure demand, and investor confidence. Despite being fully priced, the robust 86.04x subscription, solid GMP, and anchor investor backing create strong listing day momentum.

Quick Snapshot:

• IPO Size: ₹119 crore (Fresh Issue)

• Price Band: ₹67–₹71

• Final Subscription: 86.04x

• Grey Market Premium: ₹9

• Expected Listing Gain: ~12.67%

• ROCE (FY24): 23.07%

• Allotment Date: June 27, 2025

• Listing Date: July 01, 2025

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