Globe Civil Projects IPO kicks-off for subscription: Should you apply for it?

Globe Civil Projects has launched its initial public offering (IPO) today, June 24, with plans to close on Thursday, June 26. The IPO offers a price band of Rs 67-71 per share, with a lot size of 211 shares. The issue is entirely a fresh issue, aimed at raising Rs 119 crore.

The company has reserved 50% of the net issue for Qualified Institutional Bidders (QIBs), 15% for Non-Institutional Investors (NIIs), and 35% for Retail Investors. The minimum investment for retail investors involves purchasing at least one lot of 211 shares, amounting to Rs 14,137 to Rs 14,981, depending on the final price.

The proceeds from the IPO are intended to fund the company's working capital needs, capital expenditures on construction equipment, and general corporate purposes. Globe Civil Projects, a New Delhi-based firm established in 2002, has a robust presence in the engineering, procurement, and construction (EPC) sector.

For the nine months ending December 31, 2025, Globe Civil Projects reported a net profit of Rs 17.79 crore on revenues of Rs 256.74 crore. The company achieved a net profit of Rs 15.38 crore with a revenue of Rs 334.81 crore during the 2023-24 financial year, and it targets a market capitalization of Rs 424 crore.

As of August 31, 2024, Globe Civil Projects has completed 37 projects and is currently executing 12 ongoing projects with an order book of Rs 892.95 crore. Their projects span across 11 states in India, focusing on infrastructure and non-infrastructure domains. The company is commanding a grey market premium of Rs 15 per share, suggesting a 21 per cent upside.

While expert opinions on the IPO are awaited, potential investors may consider the company's strong project portfolio and recent financial performance as indicative of its growth potential. The subscription status for various investor categories will be closely monitored over the IPO duration.

Anchor book opened on June 23. The IPO will close on June 26, with the basis of allotment expected shortly thereafter. Investors are advised to confirm UPI mandates promptly to ensure participation. Refunds are to be initiated post-allotment, with shares credited to Demat accounts and listing anticipated in the coming weeks.

The company is commanding a grey market premium of Rs 15 apiece, signaling a 21 per cent gain. Mefcom Capital Markets is the sole manager for the issue, while Kfin Technologies is the register for it. Shares of the company shall be listed on both BSE and NSE, with July 1 as the tentative date of listing. Here's what a host of brokerage firms said about the IPO of Globe Civil Projects:


SBI Securities
Rating: Neutral
SBI Securities is valued at 9MFY25 annualised P/E and EV/Ebitda multiple of 17.9 times and 10.6 times, respectively. The revenue, Ebitda and PAT, has grown at a CAGR of 7.8 per cent, 39.6 per cent and 72 per cent to Rs 332 crore, Rs 45 crore and Rs 15 crore, respectively during FY22-FY24, said SBI Securities.

"The current order book position (2 times of 9MFY25 annualised revenue) provides healthy revenue visibility for the near term. Its scale of operation 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," it added.
 

Bajaj Broking
Rating: Subscribe for long-term
For the last three fiscals, Global Civil Projects has posted an average EPS of Rs 2.37 and an average RoNW of 14 per cent. The issue is priced at a P/BV of 3.06 based on its NAV of Rs 23.24 as of December 31, 2024, and at a P/BV of 1.94 based on its post-IPO NAV of Rs. 36.64 per share, said Bajaj Broking.

"If we attribute FY25 annualized 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. Well informed investors may park moderate funds for medium to long term," it said.
 

Arihant Capital Markets
Rating: Neutral
Globe Civil Projects is actively pursuing growth by tapping into India’s thriving infrastructure sector, driven by major government initiatives like the GatiShakti plan. It strengthens its foothold in the construction market by focusing on government contracts, which make up 64.75 per cent of its Rs 669.10 crore order book as of FY25, said Arihant Capital.

"With its expertise in building schools, railway infrastructure, and hospitals, the company expands its reach while using in-house engineering and MEP skills to deliver projects efficiently. Its scalable approach and solid financial growth, with a 7.82 per cent revenue CAGR from FY22 - FY24, position it as a strong player in meeting India’s infrastructure needs,' it said with a 'neutral' rating.
 

Ventura Securities
Rating: Subscribe
The IPO is entirely a fresh issue and aims to fund working capital needs and strengthen the balance sheet to support future growth. It operates in the fast-expanding Indian urban infrastructure sector, said Ventura Securities. Robust track record with Government credentials, strong financial growth and profitability, diversified project portfolio and client mix are its key strengths, it said with a 'subscribe' rating.
 

Canara Bank Securities
Rating: Neutral
Globe Civil Projects has demonstrated a steady financial growth with Ebitda margin increasing to 13.34 per cent in FY 24, PAT margin has also grown to 4.63 per cent. The issue is fairly priced at about 20 times PE at upper band considering FY 24 financials with the average of competitors, on the other hand 4 times PB which is slightly higher than competitors average, said Canara Bank Securities.

"Due to high dependency on government projects the working capital days of the company have stretched from 78 in FY 22 to 148 in 9M FY 25. Due to high dependency on government projects, we give a 'neutral' rating, investors with a long-term investment horizon can consider the opportunity based on individual analysis," it added.
 

Kunvarji Finstock
Rating: Subscribe
For the last three fiscal years, the company reported an weighted average EPS of 2.37 and an weighted average RoNW of 14 per cent. With its FY24 annualized earnings, the P/E stood at 19.8 with the consideration of its upper price band, said Kunvarji Finstock in its iPO note.

"We recommend to subscribe this IPO with long-term view as the issue appears reasonably priced. The company is involved in construction and infrastructure projects, including specialized structures, works with the government projects. The company’s headline numbers shows consistent growth with growing order book," it said.