The Goel Construction Company IPO has officially opened for subscription on September 2, 2025, creating buzz among investors in the BSE SME segment. The issue is valued at ₹99.77 crore, comprising a fresh issue of 30.84 lakh shares worth ₹80.81 crore and an offer for sale of 7.23 lakh shares totaling ₹18.96 crore. The IPO will close on September 4, 2025, with allotment scheduled to be finalized on September 8, 2025, and tentative listing expected on September 10, 2025.

Founded in 1997, Goel Construction Company (GCC) is a Rajasthan-based civil construction company with expertise in large-scale industrial, institutional, and infrastructure projects. Over the past 28 years, the company has successfully executed more than 100 projects across 12 states in India. GCC has built a reputation for technical precision, timely execution, and strong commitment to safety, quality, and sustainability.

IPO Pricing and Market Capitalisation

The price band of the Goel Construction Company IPO has been fixed between ₹250 and ₹262 per equity share, with a lot size of 400 shares. For retail investors, the minimum investment is 2 lots (800 shares), amounting to ₹2,09,600. At the upper end of the price band, the company’s market capitalisation will stand at approximately ₹378.58 crore.

The book running lead manager for the issue is Srujan Alpha Capital Advisors LLP, while MUFG Intime India Private Limited is the registrar. The market makers for the IPO are Choice Equity Broking Private Limited and Rikhav Securities Limited.

IPO Subscription Status

On the very first day of subscription, as of 12:00 PM on September 2, 2025, the Goel Construction Company IPO was subscribed 1.32 times, reflecting a positive response from investors. While demand from retail and NII segments was steady, institutional participation is expected to grow as the subscription period continues.

Anchor Investor Participation

Ahead of the IPO, Goel Construction Company raised ₹27.82 crore from anchor investors at the upper price band of ₹262 per share. The company allotted 10.62 lakh equity shares to these investors. The anchor book participation reflects investor confidence in the company’s business fundamentals and future growth potential.

Grey Market Premium (GMP)

The Goel Construction Company IPO GMP today is estimated at ₹38, indicating an expected listing price of around ₹300 per share, which represents a 14.50% premium over the issue price. However, it is important to note that the grey market premium is unofficial, unregulated, and based on demand-supply dynamics. It should only be considered for informational purposes and not as a definitive indicator of listing gains.

Financial Performance

Goel Construction Company has displayed consistent growth in revenues and profitability over the past three years:

• Revenue from operations:

  • FY23: ₹27,293.96 lakh

  • FY24: ₹38,879.39 lakh

  • FY25: ₹59,434.35 lakh

• EBITDA:

  • FY23: ₹2,561.67 lakh

  • FY24: ₹3,902.83 lakh

  • FY25: ₹6,226.40 lakh

• Profit After Tax (PAT):

  • FY23: ₹1,429.81 lakh

  • FY24: ₹2,264.33 lakh

  • FY25: ₹3,832.25 lakh

The company has achieved a steady CAGR growth, highlighting its ability to manage large projects efficiently while maintaining profitability.

Key Valuation Metrics

• Pre-issue EPS (FY24): ₹33.72

• Post-issue EPS (FY24): ₹26.52

• Pre-issue P/E ratio: 7.77x

• Post-issue P/E ratio: 9.88x

• Industry average P/E ratio: 24x

• ROCE (FY24): 33.69%

• ROE (FY24): 34.09%

• RoNW (FY24): 34.09%

These figures indicate that the IPO is fairly priced compared to industry peers and offers an opportunity for investors seeking exposure in the construction and infrastructure sector.

Utilisation of IPO Proceeds

The net proceeds from the IPO will be utilised as follows:

1. ₹4,174.38 lakh for capital expenditure towards the purchase of additional equipment and fleets.

2. ₹2,305.25 lakh for repayment or prepayment of certain outstanding borrowings.

3. Remaining funds will be used for general corporate purposes.

Promoter Leadership

The company is spearheaded by Mr. Purushottam Dass Goel (Managing Director) and Mr. Arun Kumar Goel (Whole Time Director), who each have more than 27 years of experience in the construction industry. Their vision, leadership, and active involvement have played a pivotal role in the company’s sustained growth and successful execution of projects.

Investor Outlook

The Goel Construction Company IPO review suggests that while the IPO is fairly priced, it may be more suitable for risk-tolerant investors aiming for potential listing gains, especially given the current GMP trend and strong fundamentals. Long-term investors may also consider the company’s robust financial performance, strong order book, and steady industry demand as positive indicators for future growth.

Conclusion

The Goel Construction Company IPO represents a significant opportunity in the SME segment. Backed by strong financials, experienced leadership, and a solid track record of project execution, the company stands well-positioned to capitalise on the growing demand in the construction and infrastructure sector. With its IPO opening on September 2, 2025, and listing scheduled for September 10, 2025, investors have a short window to evaluate and apply.

The combination of ₹99.77 crore issue size, ₹250–₹262 price band, strong subscription status, and anchor investor confidence makes this IPO one to watch closely in the SME market. However, as with any IPO, investors should carefully assess financials, valuation, and market conditions before making investment decisions.

The Upcoming IPOs in this week and coming weeks are Vashishtha Luxury Fashion, Karbonsteel Engineering, Sharvaya Metals, Austere Systems, Optivalue Tek Consulting, Vigor Plast India, Goel Construction Company.

The Current active IPO are Amanta Healthcare, Rachit Prints, Abril Paper Tech, Sneha Organics, Sugs Lloyd, Oval Projects.

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