Globe Civil Projects, an integrated engineering, procurement and construction (EPC) company headquartered in New Delhi, has officially opened its Initial Public Offering (IPO) for public subscription on June 24, 2025, and it will remain open until June 26, 2025. The IPO is a Book Built Issue of ₹119.00 crores, comprising entirely a fresh issue of 167.60 lakh shares.

The price band has been set between ₹67 to ₹71 per equity share, and the company's expected market capitalisation at the upper price band of ₹71 is approximately ₹424.00 crores. The lot size for bidding is 211 shares, requiring a minimum investment of ₹14,981 by retail investors. HNIs are required to apply for a minimum of 14 lots (2,954 shares) amounting to ₹2,09,734.

The book running lead manager for this IPO is Mefcom Capital Markets Limited, while KFin Technologies Limited is the registrar for the issue.

About the Company

Globe Civil Projects operates in the EPC space and has successfully executed projects across eleven Indian states, including Uttar Pradesh, Haryana, Delhi, Maharashtra, Andhra Pradesh, Karnataka, Gujarat, Chhattisgarh, Rajasthan, Uttarakhand, and Himachal Pradesh.

The company is actively involved in three major project categories:

• Transport and Logistics Projects

• Social and Commercial Infrastructure

• Non-Infrastructure Projects such as commercial offices and housing

This diversified portfolio ensures a robust revenue pipeline and an ability to serve across multiple sectors, giving Globe Civil Projects a competitive edge.

The company is led by experienced promoters — Ved Prakash Khurana, Nipun Khurana, and Vipul Khurana — who have an average experience of 19 years in the construction industry. Their strategic planning and operational execution are supported by a seasoned senior management team.

IPO Grey Market Premium (GMP) and Listing Outlook

The Grey Market Premium (GMP) for Globe Civil Projects IPO as of June 24, 2025, stands at ₹9, indicating an approximate listing gain of 12.67% over the issue price of ₹71. This suggests moderate investor enthusiasm in the unregulated grey market.

While GMP trends should not be the sole determinant for IPO participation, they do provide a sentiment snapshot of the broader investor community.

IPO Subscription Status

As of 11:00 AM on June 24, 2025, the Globe Civil Projects IPO was subscribed 9.52 times, showcasing strong investor interest even before the final day of bidding. This is a positive signal for both retail and institutional participants.

Anchor Investment Participation

Ahead of the IPO opening, Globe Civil Projects raised ₹35.69 crores from anchor investors at ₹71 per share. A total of 50,28,168 equity shares were allocated under this quota, signaling institutional confidence in the company’s business model and future outlook.

Financial Performance Snapshot

The financial statements of Globe Civil Projects reflect steady and consistent growth, especially in terms of revenue, profitability, and operational margins:

• Revenue from Operations:

  • FY2022: ₹2,867.84 million

  • FY2023: ₹2,351.69 million

  • FY2024: ₹3,348.14 million

  • 9M FY2025 (Dec 31, 2024): ₹2,567.37 million

• EBITDA:

  • FY2022: ₹239.84 million

  • FY2023: ₹226.22 million

  • FY2024: ₹473.05 million

  • 9M FY2025: ₹413.78 million

• Profit After Tax (PAT):

  • FY2022: ₹52.01 million

  • FY2023: ₹48.51 million

  • FY2024: ₹153.78 million

  • 9M FY2025: ₹177.89 million

This pattern of rising profitability and EBITDA margins demonstrates a mature business that is becoming more operationally efficient over time.

Valuation Metrics and Return Ratios

When it comes to valuation, the IPO presents a mixed picture:

• Pre-issue EPS (FY24): ₹3.58

• Post-issue EPS (FY24): ₹2.58

• Pre-issue P/E Ratio: 19.83x

• Post-issue P/E Ratio: 27.57x

• Industry Average P/E: 20x

• ROCE: 23.07%

• ROE: 21.95%

• RoNW: 19.80%

• Annualised EPS: ₹3.97

• Annualised P/E: 17.88x

While return metrics like ROCE and ROE are quite healthy, the post-issue P/E of 27.57x suggests the IPO is fully priced, if not a bit on the higher side. However, the annualised P/E of 17.88x brings some valuation comfort, assuming future earnings growth sustains.

Utilization of IPO Proceeds

The net proceeds from the IPO are proposed to be used for the following:

1. ₹750 million for working capital requirements

2. ₹142.55 million for capital expenditure related to equipment and machinery purchases

3. The remaining amount for general corporate purposes

This allocation indicates the company is focusing on growth and operational expansion, particularly through new project execution and technological upgrades.

IPO Allotment & Listing Timeline

The allotment date is scheduled for Friday, June 27, 2025, with the listing expected on Tuesday, July 1, 2025, on both the BSE and NSE.

Investors can check the IPO allotment status via the KFin Technologies portal using:

• Application Number

• PAN

• DP/Client ID

Final Recommendation

The Globe Civil Projects IPO is backed by:

• Strong sector fundamentals

• Widespread geographic execution

• Proven promoter experience

• Rising revenues and profitability

• Reasonable GMP of ₹9 indicating listing gains

However, the valuation appears stretched post-issue, and investors must factor in market volatility and sector cyclicality.

Hence, risk-tolerant investors looking for potential listing gains may consider applying, while conservative investors should wait for post-listing stability.

Conclusion

Globe Civil Projects brings to the table a solid track record in the EPC and infrastructure sectors, with strong anchor investor backing, an encouraging GMP, and robust subscription numbers. Despite being fully priced, its project pipeline, profitability growth, and sector alignment may drive listing gains. Thus, the IPO could be worth considering for risky investors aiming at short-term returns, while long-term holders should evaluate post-listing performance before entry.

Disclaimer: The information provided in this article is for educational and informational purposes only. It does not constitute investment advice. Investors are advised to consult certified financial advisors before making any investment decision.

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