The initial public offering (IPO) of Globe Civil Projects Ltd., a New Delhi-based engineering, procurement and construction (EPC) firm, will open for subscription from June 24 to 26, 2025, seeking to raise ₹119 crore through a fresh issue of 1.68 crore shares, priced in the range of ₹67–₹71 per share.
Bullish Grey Market Premium (GMP)
Investor sentiment is notably upbeat, with the share trading at approximately ₹84 in the grey market—an 18.3% premium over the upper price band of ₹71. Other reports indicate GMP at around ₹13, affirming strong subscription appetite.
This optimism suggests significant anticipated listing gains, although grey‑market indicators often fluctuate before listing.
IPO Structure Overview
- Issue Size: ₹119 crore (100% fresh issuance).
- Price Band: ₹67–₹71/share.
- Lot Size: 211 shares (₹14,981 at upper band).
- Allocation: 50% QIBs | 35% Retail | 15% NIIs.
- Anchor Bidding: June 23, 2025; Allotment of shares expected June 27, with listing scheduled for July 1 on BSE & NSE.
Company Profile & Financials
Founded in 2002, Globe Civil Projects operates across 11 Indian states, offering EPC services in transport, social, commercial, and non-infrastructure sectors. Its project-based pedigree includes:
- 37 completed projects, including railway bridges and educational campuses
- 12 ongoing projects as of August 2024
- Order Book: ₹893 crore – over 2× its FY24 revenue
Financial Growth (FY22–FY24):
- Revenue grew from ₹233 crore to ₹334 crore
- PAT progressed from ₹4.8 crore to ₹15.4 crore
- EBITDA margins expanded to ~13–15%; PAT margins near 4–7%
This growth trajectory reflects effective execution, improved margin discipline, and a rising order environment.
Objective of the Issue
Proceeds are intended for:
- Working capital – ₹75 crore
- Machinery & equipment capex – ₹14.26 crore
- General corporate purposes and IPO costs
These investments aim to enhance operational capacity and support future growth.
What the GMP Suggests
An 18% GMP (grey market premium) signals strong pre-issue interest and potential first-day listing gains. For example, investors booking at ₹84 (versus ₹71 upper band) could see immediate upside.
However, grey-market dynamics can shift. Earnings performance, shift in market sentiment, and peer IPO outcomes should inform investment decisions.
Risks & Considerations
- Debt Levels: D/E stands at ~1.4×, higher than some peers
- Project-Based Execution: Revenue is tied to contractor payments and project timelines
- Turnaround Pressure: Sustaining margin performance amid macroeconomic uncertainties
Despite these, consistent order inflows, strong financials, and EPC expertise position the company favorably.
Should You Apply?
For long-term investors, Globe Civil offers:
- A stable ticket in the EPC sector backed by a robust order book
- Sensible pricing (P/E ~18×) compared with larger counterparts
- GSTed cost projections for ₹90–100 price range upon listing if sentiment remains strong
For short-term traders, GMP-driven momentum can yield quick profits—yet comes with grey-market volatility.
Upcoming IPO Timeline
- Anchor Bidding: June 23, 2025
- Retail Subscription: June 24–26, 2025
- Allotment Date: June 27
- Listing & Demat Credit: June 30
- BSE/NSE Listing: July 1, 2025
Disclaimer:
This article is for informational purposes only and does not constitute investment advice, recommendation, or solicitation to buy or sell any securities. Investors are advised to consult a certified financial advisor and carefully read the Red Herring Prospectus (RHP) and other related documents before making any investment decisions. The mention of GMP (Grey Market Premium) is indicative and unofficial, and should not be solely relied upon. Stock market investments are subject to market risks. Past performance is not indicative of future results.
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