Globe Civil Projects IPO: Complete Analysis & Review 2025
IPO At a Glance: Infographics
1. Globe Civil Projects IPO 2025: Profile and Major Information
Globe Civil Projects Ltd. is a New Delhi-based EPC (Engineering, Procurement, Construction) company focused on infrastructure projects like roads, bridges, and buildings. It launched a book-built public issue in June 2025 as a 100% fresh issue to raise approximately ₹119 crores through the allotment of ~1.68 crore new shares.
IPO Key Metrics
Valuation Snapshot
2. IPO Dates and Timeline
The IPO was structured for a quick turnaround, from subscription opening on June 24, 2025, to the market listing on July 1, 2025. This tight schedule ensured swift allotment and trading commencement.
IPO Event Timeline
3. Structure of IPO Allotment
Following SEBI guidelines for a book-built issue, the IPO allocation was structured to provide fair access to institutional, high net-worth, and retail investors.
IPO Allocation by Investor Category
Allocation Breakdown
- QIBs (Up to 50%): For large financial institutions, including a 5% sub-quota for mutual funds.
- NIIs (At least 15%): For High Net-worth Individuals (HNIs).
- RIIs (At least 35%): For retail investors, ensuring broad public participation.
4. IPO Subscriptions
The IPO received a robust response from the market, signaling strong investor confidence. It was comfortably oversubscribed on its first day, with aggressive bidding seen across all categories.
IPO Subscription (Day 1 Approx. Figures)
5. IPO GMP (Grey Market Premium)
The Grey Market Premium (GMP), an informal indicator of listing-day expectations, trended positively, suggesting the market anticipated a healthy listing gain.
GMP Trend (₹)
Implied Listing Premium (%)
6. IPO Risk Factors
Despite strong prospects, investors should be aware of several key risks inherent to Globe Civil Projects' business model and the EPC industry.
- Client & Project Concentration: Over 50% of revenue from a few government clients; top 10 projects constitute 90%+ of revenue.
- Execution & Delay Risk: Project delays or cancellations can significantly impact financials.
- Working Capital Intensive: High working capital needs and potential delays in receivables can affect cash flows.
- Limited Insurance Coverage: The majority of assets are uninsured, increasing vulnerability to unforeseen events.
- Regulatory Exposure: Business is sensitive to infrastructure policies, project clearances, and government payment cycles.
7. IPO Review (Analyst Sentiment)
Analysts expressed cautious optimism, highlighting long-term potential while noting short-term challenges like debt and scale. The consensus leaned towards "Subscribe for long-term".
Analyst Recommendations Breakdown
8. IPO Financials (FY22–FY24)
The company showcased a significant financial rebound in FY24, with revenue and profitability doubling, indicating strong operational efficiency. However, debt remains a key monitorable.
Revenue & EBITDA (₹ Cr)
Net Profit (PAT) (₹ Cr)
Profitability Margins (%)
9. IPO Peer Comparison
Globe Civil's valuation is at the higher end compared to some mid-sized peers, suggesting the market is pricing in its future growth potential. It shows competitive margins but is smaller in scale than industry leaders.
Peer Comparison: P/E Ratio
Peer Comparison: PAT Margin (%)
Peer Comparison: Revenue (FY24, ₹ Cr)
Conclusion & Final Verdict
Globe Civil Projects Ltd. presents a compelling investment case for those bullish on India's infrastructure story. The company's robust order book, improving margins, and strong investor demand are significant green flags. However, the high dependency on government clients, execution risks, and notable debt level warrant caution.
The IPO is best suited for investors with a moderate risk appetite and a long-term horizon. Those seeking quick listing gains should be mindful of the inherent volatility in the infra sector.
Positives
- Strong order book & revenue visibility
- Improving profitability margins
- Overwhelming subscription demand
- 100% fresh issue for growth funding
Concerns
- High client and project concentration
- Significant working capital needs
- Relatively high debt-to-equity ratio
- Cyclical nature of the EPC sector
Disclaimer
This content is for informational and educational purposes only and should not be construed as financial advice or a recommendation to buy/sell any security. Please read the Red Herring Prospectus (RHP) and consult your financial advisor before investing. Stock market investments are subject to market risks.
Frequently Asked Questions
The IPO opened on June 24, 2025, and closed on June 26, 2025.
The price band was ₹67 to ₹71 per share. The minimum lot size was 211 shares, for an investment of ₹14,981 at the upper band.
The shares are tentatively scheduled to list on the BSE and NSE on July 1, 2025.
The IPO was subscribed approximately 5.8 times on Day 1, with final figures indicating very strong demand across all investor categories.
The GMP ranged from ₹10 to ₹16, suggesting a potential listing premium of 10% to 22% over the issue price.
Analysts have a generally positive view for long-term investors, citing strong growth prospects. However, investors should consider the risks like high debt and client concentration.
Key risks include high dependence on government contracts, significant working capital requirements, project execution delays, and limited insurance coverage on assets.
The IPO is a fresh issue aiming to raise approximately ₹119 crore. There is no Offer for Sale (OFS), so all proceeds go to the company.
Pingback: Nifty IPO Index Stocks List – Latest Prices & Updates