Globe Civil Projects IPO Opens; Day 1 Sees Full Subscription & 20% GMP

Globe Civil Projects Ltd, a Delhi-based infrastructure EPC company, launched its ₹119 crore fresh equity IPO on June 24, priced at ₹67–71 per share (lot of 211 shares). Proceeds will fund working capital, machinery, and general corporate purposes.

Day 1 Highlights:

Fully subscribed within 90 minutes – bids received for 1.21 cr shares vs 1.17 cr offered.

Retail portion: Subscribed ~1.43×; NII: ~1.5×; QIBs yet to participate.

Grey market premium (GMP) around ₹14–15, signalling a ~20–21% expected listing gain (unlisted trading at ~₹86).

Key IPO Details:

Issue Size: ₹119 crore (1.67–1.68 cr shares)

Price Band: ₹67–71; Lot Size: 211 shares (minimum investment ₹14,981)

Allotment & Listing Timeline:

Closes: June 26

Allotment: ~June 27

Listing: Expected July 1 on BSE & NSE.

Company Background & Financials:

Founded in 2002, active in 11 Indian states across roads, bridges, flyovers, sewerage, housing, and more

FY24 Revenue: Rs 334.8 cr; PAT: Rs 15.4 cr (YoY +217%); 9M FY25 PAT Rs 17.8 cr on Rs 256.7 cr revenue

Order Book: Rs 669–892 cr, indicating 2× revenue visibility

Analyst Views:

Bajaj Broking, Ventura Securities recommend “Subscribe – long term”, citing strong execution and healthy margins despite de-growth in FY23.

SBI Securities remains Neutral, citing high debt (D/E ~1.4×) and small scale.

Strong debut demand with full Day 1 subscription and GMP indicating solid listing gains.

Valuation: At upper price of ₹71, P/E ~18× (FY25 annualised); somewhat richly priced but justified by growth and margins.

Risks: High leverage, dependence on government contracts, and small operating scale.

Ideal for: Long-term investors seeking exposure to mid-sized EPC firms with robust order backlog and proven execution.