Globe Civil Projects IPO

Globe Civil Projects Limited Initial Public Offering (IPO)

The Globe Civil Projects Limited Initial Public Offering (IPO) was a major event in the Indian primary market, aimed at raising ₹119 crore through a fresh issue of 1.68 crore equity shares. Below is a detailed overview based on available information:

Globe Civil Projects IPO Key Details

• Issue Type: Book-built issue, wholly a fresh issue with no offer-for-sale (OFS) component.
• Issue Size: ₹119 crore through 1,67,60,560 equity shares.
• Price Band: ₹67 to ₹71 per share.
• Lot Size: Minimum application of 211 shares (₹14,137 to ₹14,981 at the price band).
  • Retail investors: Maximum 13 lots (2,743 shares, ₹194,753 at upper price band).
  • Small Non-Institutional Investors (sNII): Minimum 14 lots (2,954 shares, ₹209,734).
  • Big Non-Institutional Investors (bNII): Minimum 67 lots (14,137 shares, ₹1,003,727).
• Subscription Dates: Opened on June 24, 2025, and closed on June 26, 2025.
• Subscription Status:
  • Subscribed 86.04 times overall, receiving bids for nearly 101 crore shares against 1.17 crore offered.
  • Non-Institutional Investors (NII): 143.15 times.
  • Qualified Institutional Buyers (QIB): 99.76 times.
  • Retail Individual Investors (RII): 53.72 times.
  
  
• Allotment Date: Finalized on June 27, 2025.
• Date of Listing: Tentatively July 1, 2025, on NSE and BSE.
• Grey Market Premium (GMP): Ranged between ₹12 to ₹15 during subscription, indicating a potential listing gain of 17–24% (estimated listing price of ₹83–₹88 per share).
• Anchor Investors: Raised ₹35.7 crore from six anchor investors, including Chanakya Opportunities Fund and Steptrade Revolution Fund, by allocating 50.28 lakh shares at ₹71 per share on June 23, 2025.

Company Overview

• Incorporation: Established in 2002, headquartered in New Delhi, Globe Civil Projects is an integrated Engineering, Procurement, and Construction (EPC) company.
• Operations: Executes infrastructure (roads, bridges, railways, airports) and non-infrastructure projects (housing, commercial offices, schools, hospitals) across 11 Indian states, including Uttar Pradesh, Haryana, Delhi, and Maharashtra. Also involved in Mechanical, Electrical, and Plumbing (MEP), HVAC, firefighting, and TMT steel trading.
• Track Record: Completed 37 projects and has 12 ongoing projects as of August 31, 2024. Order book valued at ₹892.95 crore (August 2024) and ₹669.10 crore (March 2025).
• Financials:
  • FY24: ₹334.81 crore revenue (up 42% from ₹235.17 crore in FY23), ₹15.38 crore net profit (up 217% from ₹4.85 crore in FY23).
  • Nine months ended December 31, 2024: ₹256.74 crore revenue, ₹17.79 crore net profit.
• Employees: 112 permanent and 106 contract workers as of March 31, 2025.
• Market Capitalization: ₹424 crore post-IPO at the upper price band.
• Promoters: Ved Prakash Khurana, Nipun Khurana, and Vipul Khurana. Note: A civil suit exists against promoters Ved and Vipul Khurana for a ₹91 lakh loan in Hanumangarh Court.

IPO Objectives

The net proceeds from the IPO were intended for:

• Working Capital Requirements: ₹75 crore.
• Capital Expenditure: ₹14.26 crore for purchasing construction equipment and machinery.
• General Corporate Purposes: Remaining funds, including issue expenses.

Strengths

• Strong project execution across 11 states with a diverse portfolio (transport, logistics, social, and commercial projects).
• Robust order book (₹669.10 crore as of March 2025) ensures revenue visibility.
• Significant financial growth: 7.82% revenue CAGR from FY22–FY24, with a 217% profit increase in FY24.
• Registered as a Class-1 Super contractor with CPWD, enabling bids for projects up to ₹650 crore.
• Diversification initiatives to reduce dependency on CPWD (from 54.62% of FY22 revenues to 10.10% in December 2024).

Risks

• High reliance on government contracts (64.75% of order book), exposing it to policy decision risks.
• Debt-to-equity ratio of 1.4x (December 2024), higher than peers, posing liquidity risks.
• Project delays and penalties (e.g., ₹0.73 million penalty in FY22 for IIM Udaipur project delays).
• Low bidding success rate (9.09% in nine months to December 2024 vs. 54.55% in FY24), raising concerns about future revenue.
• Volatility of input costs (steel, cement) and regulatory risks in the EPC sector.
• Small operational scale compared to peers, which could impact performance if projects are delayed.

Analyst Recommendations

• Ventura Securities: "Subscribe" for long-term investors due to a healthy order book and potential in India's infrastructure space.
• Bajaj Broking: Recommends subscribing for long-term investment.
• Arihant Capital Markets: "Neutral" rating, citing growth potential but concerns over debt and scale.
• SBI Securities: "Neutral," advising investors to monitor post-listing financial performance due to high debt and small scale.
• Canara Bank Securities: "Neutral," suitable for long-term investors.
• Kunwarji Wealth Solutions: "Subscribe" for long-term investors.
• Gaurav Goel (Fynocrat Technologies): Recommends subscribing for long-term investors with risk appetite for small-cap infra exposure, but short-term returns could be constrained by size and sector risks.

Valuation

• P/E Ratio: 17.88 (post-IPO), considered fully priced compared to peers like B L Kashyap (P/E 84.4), Ceigall India (14.6), PSP Projects (51.9), Capacite Infra (13.4), and Ahluwalia Contracts (29.6).
• Order Book: Provides revenue visibility, but declining bidding success raises concerns.
• Recommendation: Analysts suggest the IPO is fairly valued, suitable for medium- to long-term investors with moderate exposure due to risks like debt and project delays.

How to Check Allotment Status

Investors can check the allotment status on:

Globe Civil Projects IPO allotment status can be checked online on the websites of BSE and NSE, as well as the official portal of the IPO registrar. Kfin Technologies is the Globe Civil Projects IPO registrar.

• BSE/NSE Websites: Using the application number or PAN.
• Kfin Technologies Portal: The IPO registrar’s website (https://kosmic.kfintech.com/ipostatus/).

Shares were credited to demat accounts by June 30, 2025, with refunds initiated for non-allottees on the same day.

Post-IPO Sentiment (Now)

• Social media posts on X during the subscription period emphasized strong investor demand, especially among infrastructure-centric investors, due to the company’s healthy order book and public sector heritage.
• The IPO’s substantial subscription (86x) and GMP of 17–24% suggest optimism, though listing gains may be modest due to the fully priced issue.

Conclusion

The Globe Civil Projects IPO garnered significant investor interest, driven by its robust order book, diversified project portfolio, and India’s infrastructure expansion. However, risks such as high debt, project delays, and a low bidding success rate warrant caution. Long-term investors with a risk tolerance for small-cap stocks may find it a suitable opportunity, but short-term investors should temper expectations due to sector volatility and valuation concerns. Always consult a financial advisor and review the Red Herring Prospectus (RHP) before investing.

For More Details

• Globe Civil Projects: http://www.globecivilprojects.com/
• IPO Registrar (Kfin Technologies): https://kosmic.kfintech.com/ipostatus/
• SEBI RHP: https://www.sebi.gov.in/

Disclaimer

There are market risks involved in investments in IPOs. Consult a financial advisor and read the RHP carefully before investing.