Globe Civil Projects IPO Deep Dive 2025 Globe Civil Projects Ltd.’s initial public offering is announced to open on Tuesday.
IPO Overview
The IPO is a fresh issue of 1.67 crore shares aimed at raising ₹119 crore entirely for the company’s growth No offer for sale involved
The price band is ₹67 to ₹71 and the minimum lot size is 211 shares representing a ₹14 981 investment The IPO opens June 24 and closes June 26 Allotment to be finalised June 27 with credits or refunds on June 30 and listing expected on July 1 on BSE and NSE
Anchor investors have already committed ₹35.7 crore with participation from Maybank Chanakya Opportunities Fund I Benani Capital Steptrade Lords Multigrowth among others.
Business Model
Globe Civil Projects is a Delhi based EPC firm working across 11 states including UP Maharashtra Gujarat Karnataka Andhra Pradesh and Rajasthan It specialises in infrastructure projects including roads flyovers railway bridges airport terminals water and sewerage systems social infrastructure and commercial and residential development This wide project mix positions the company to benefit from India’s urbanisation and infrastructure push.
Financial Health
In FY24 revenue stood at ₹332.16 crore with profit after tax at ₹15.37 crore representing a 217 percent increase from ₹4.85 crore in FY23 EBITDA margin remained strong at 33.2 percent.
In the nine months to December 2024 revenue reached ₹254.65 crore and PAT ₹17.78 crore The company has shown consistent profits with a three year revenue CAGR of around 8 percent Order book in FY24 exceeds ₹900 crore with RoE at 21.9 percent and RoCE at 23 percent.
Use of Funds
Proceeds are intended to strengthen working capital worth ₹75 crore The remainder will support machinery equipment capital expenditure and general corporate requirements Enhanced working capital is especially important for timely project delivery and managing the order backlog.
Grey Market Premium (GMP)
Current GMP stands at ₹15 per share suggesting a likely listing at ₹86 which implies a 21 percent gain over the upper price band This strong positive reaction is higher than peer infrastructure IPOs such as Kalpataru and Ellenbarrie where premium remains in single digits.
Investment Rationale
- Strong visible order book worth ₹900 crore ensures revenue certainty
- Healthy EBITDA margin at 33 percent demonstrates operational efficiency
- Rapid PAT growth signals improving profitability
- Anchor participation indicates institutional confidence
- GMP suggests attractive listing gains
Risks
- High debt and working capital intensity common in EPC may add financial strain
- Being a midtier infrastructure player execution delays could impact margins
- Regulatory or policy changes in government spending may impact order flows
Should You Subscribe
For long term investors the stable margins and order book support growth potential in small cap segment Short term speculators may benefit from GMP driven listing gains of around 20 percent cautious investors should weigh infrastructure risks and allocations based on risk appetite.
Final Verdict
Globe Civil Projects IPO offers a compelling story with an established order pipeline strong margins and clear fund usage for growth The pricing appears reasonable and grey market activity hints at listing upside Near term gains are possible but investors should remain mindful of sector level challenges like execution delays debt pressure and market cycles A balanced allocation in diversified portfolios could be prudent.
Top 5 FAQs – Globe Civil Projects IPO
1. What is the issue size of the Globe Civil Projects IPO?
The IPO is a fresh issue worth approximately ₹119 crore. There is no offer-for-sale (OFS), meaning the entire amount will be raised by the company for growth and capital needs.
2. What is the price band and lot size for the IPO?
The price band is set between ₹67 to ₹71 per share. One lot consists of 211 shares, making the minimum investment approximately ₹14,981 for retail investors.
3. What are the key dates for the IPO?
- IPO Open Date: June 24, 2025
- IPO Close Date: June 26, 2025
- Allotment Date: June 27, 2025
- Refunds/Share Credit: June 30, 2025
- Listing Date: July 1, 2025 (on BSE and NSE)
4. What is the current GMP (Grey Market Premium)?
As of June 23, 2025, the GMP is ₹15 per share, suggesting a potential listing price of around ₹86 — nearly 21% higher than the upper price band.
5. Should I apply for this IPO?
If you’re a long-term investor, the company’s strong financials, ₹900+ crore order book, and healthy margins make it a promising pick. For short-term investors, the GMP indicates a good listing gain potential. However, as with any small-cap infrastructure company, consider risks like execution delays and market fluctuations before investing.
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