Globe Civil Projects IPO opens today: GMP up 21%; should you subscribe?

Globe Civil Projects IPO opens for public subscription today; check price, lot size, GMP, review, latest subscription status, allotment date, listing date, and other key details here

Globe Civil Projects IPO opens for subscription: The initial public offering (IPO) of integrated engineering, procurement, and construction (EPC) company Globe Civil Projects opens for public subscription today, Tuesday, June 24. At the upper end, the company seeks to raise ₹119 crore from the public offering. Ahead of the opening of the public offering, Globe Civil Projects successfully raised ₹35.70 crore from anchor investors in a bidding that concluded on Monday, June 23.

As the public offering opens for subscription, here are the key details of the Globe Civil Projects IPO:

Globe Civil Projects IPO structure

Globe Civil Projects IPO is a book-built issue, which comprises an entirely fresh issue of 16.8 million equity shares with no offer for sale (OFS) component.

 

 

Globe Civil Projects has reserved not more than 50 per cent of the net offer for qualified institutional buyers (QIBs), not less than 35 per cent for retail investors, and not less than 15 per cent for non-institutional investors (NIIs).

Globe Civil Projects IPO price band, lot size

The public issue of Globe Civil Projects is available at a price band of ₹67-71 per share, with a lot size of 211 shares. Thus, investors can bid for a minimum of 211 shares of Globe Civil Projects IPO and in multiples thereof.

 

A retail investor would require a minimum of ₹14,981 to bid for one lot of Globe Civil Projects IPO, and a maximum of 13 lots or 2,743 shares, with an investment amount of ₹1,94,753. 

Globe Civil Projects IPO grey market premium (GMP)

The unlisted shares of Globe Civil Projects were commanding a decent premium in the grey market ahead of the opening of the public issue. Sources tracking unofficial market activities revealed that Globe Civil Projects shares were seen trading at around ₹86 per share, reflecting a grey market premium (GMP) of ₹15 or 21.13 per cent over the upper end of the issue price.

Globe Civil Projects IPO allotment date, listing date

The three-day subscription window to bid for the Globe Civil Projects IPO is set to close on Thursday, June 27. Following the closure of the subscription window, the basis of allotment of Globe Civil Projects IPO shares is likely to be finalised on Friday, June 28. The successful allottees will receive the company’s shares in their demat account on Monday, June 30.

 

Shares of Globe Civil Projects are slated to make their D-Street debut by listing at BSE and NSE, tentatively on Tuesday, July 1.

Globe Civil Projects IPO registrar, lead managers

Kfin Technologies is the registrar for the Globe Civil Projects IPO, while MEFCOM Capital Markets is the sole book-running lead manager.

Globe Civil Projects IPO objective

Globe Civil Projects proposes to utilise the net proceeds from the public issue for funding the working capital requirements of the company, as well as for capital expenditure towards the purchase of construction equipment/machinery. The company will use the remaining proceeds for general corporate purposes.

Should you subscribe to Globe Civil Projects IPO?

SBI Securities - Neutral

Brokerage firm SBI Securities, in its report, has assigned a Neutral rating on the Globe Civil Projects IPO. The company, the brokerage said, is valued at a 9MFY25 annualised P/E and EV/Ebitda multiple of 17.9x /10.6x, respectively. The Revenue/Ebitda/PAT has grown at a CAGR of 7.8 per cent/39.6 per cent/72.0 per cent to ₹332 crore / ₹45 crore/₹15 crore, respectively, during FY22-FY24. The current order book position (~2.0x of 9MFY25 annualised revenue) provides healthy revenue visibility for the near term.

 

“However, D/E at 1.4x as of Dec’24 is relatively higher than its peers. The company's scale of operations is also very small, which can impact financial performance if any project is stalled. Investors are advised to review the financial performance of the company post listing. We maintain a ‘Neutral’ outlook on the company,” said SBI Securities in its report.

 

Bajaj Broking - Subscribe for long-term

Analysts at Bajaj Broking have recommended that investors subscribe to the issue with a long-term perspective. "If we attribute FY25 annualised earnings to its post-IPO fully diluted paid-up equity capital, then the asking price is at a P/E of 17.88. Based on FY24 earnings, the P/E stands at 27.52. Thus, the issue is fully priced," wrote the analysts in a research note. "Well-informed investors may park moderate funds for the medium term," they said.

About Globe Civil Projects

Incorporated in 2002, Globe Civil Projects is an integrated engineering, procurement, and construction (EPC) company headquartered in New Delhi. The company is involved in the execution and construction of infrastructure projects, including Transport and Logistics projects, Social and Commercial projects, and non-Infrastructure projects such as commercial offices and housing. 

Globe Civil Projects financial details

In FY24, profit attributable to the company's owners rose 216.91 per cent year-on-year to ₹15.73 crore, compared to ₹4.85 crore in FY23. For the nine months ended December 31, 2024, profit stood at ₹17.78 crore. 

  Globe Civil Projects' revenue increased 42.4 per cent year-on-year to ₹332.2 crore in FY24 from ₹233.3 crore in FY23. For the nine months ended December 31, 2024, revenue was ₹254.65 crore.  Meanwhile, the company's total expenditure rose to ₹313.82 crore in FY24, up 37.4 per cent from ₹228.4 crore in FY23. For the nine-month period ending December 31, 2024, it stood at ₹233.58 crore.