Globe Civil Projects

Globe Civil Projects Limited, a New Delhi-based EPC contractor with over two decades of experience, is launching its Mainboard IPO on BSE & NSE from June 24–26, 2025. With a robust order book and government-backed projects, the company is eyeing growth amid India’s massive infrastructure push.

🧱 IPO Snapshot

Issue Size: ₹119 Cr (Fresh Issue – 1.68 Cr shares)

Price Band: ₹67–₹71 | P/E Ratio: 17.88x–19.83x (FY24 basis)

Lot Size: 211 shares → ₹14,981 minimum investment (cutoff price)

Allotment: June 27 | Listing: July 1, 2025

Lead Manager: Mefcom Capital | Registrar: KFin Tech

GMP (June 24): ₹14–₹16 → Estimated listing gains: ~19.7% to 22.5%

Subscription (Day 1): 6.97x overall | Retail: 1.62x

🏗️ Company Overview

Established: 2002 | Headquarters: New Delhi

Sector: EPC – Engineering, Procurement & Construction

Scope: Roads, bridges, hospitals, railway structures, and commercial housing

Presence: Projects across 11 Indian states

Certifications: Class-1 Super Contractor (CPWD) – eligible for bids up to ₹650 Cr

Order Book: ₹669.10 Cr (Mar 31, 2025), down from ₹892.95 Cr (Aug 2024)

Notable Projects: NIT Narela (₹327 Cr), AIIMS Raipur (₹181.35 Cr)

Promoters: Ved, Nipun & Vipul Khurana

📊 Financial Highlights

FY23 Revenue: ₹233.35 Cr | PAT: ₹4.85 Cr

FY24 Revenue: ₹332.16–₹334.81 Cr | PAT: ₹15.37–₹15.73 Cr (217% YoY growth)

9M FY25 Revenue: ₹254.65–₹256.74 Cr | PAT: ₹17.78–₹17.79 Cr

PAT CAGR (FY22–FY24): 72% | EBITDA CAGR: 39.6%

💸 IPO Utilization

₹75 Cr: Working Capital

₹14.26 Cr: Equipment & Machinery

Balance: Corporate purposes & issue expenses

🌍 Industry Backdrop

India’s infrastructure sector is booming—projected to reach a GVA of ₹21.8 trillion by 2030, driven by NIP, Bharatmala, and GatiShakti. Globe Civil Projects is strategically placed to benefit, with 64.75% of its order book in government projects.

✅ Investment Positives

Solid Financial Growth: PAT up 217% in FY24

Strong Order Book: ₹669.10 Cr in hand across 11 states

Government Focus: Class-1 status allows large-value project bidding

Positive GMP: Signals strong listing interest (~20% gains)

Geographical Reach: Active across key states with plans to expand further

Subscription Momentum: Healthy early interest from all investor segments

⚠️ Risks to Consider

Government Dependency: 65%+ order book from government clients

Order Book Decline: Dropped from ₹892 Cr to ₹669 Cr in 7 months

Low Bidding Success Rate: Only 9.09% in 9M FY25 (vs. 54.55% in FY24)

Valuation Fully Priced: P/E of 19.83x (FY24) may limit upside

Legal Proceedings: Ongoing civil suit against promoters

Execution Risk: Project delays can attract penalties (e.g., IIM Udaipur case)

📌 Recommendation

With strong growth, solid credentials, and positive listing sentiment, Globe Civil Projects IPO appeals to investors looking to tap into India’s infrastructure megatrend. However, risks from order book decline, valuation concerns, and government reliance should be weighed.

📢 Retail investors with moderate to high risk appetite may apply for listing gains or long-term growth, while conservative investors should assess revenue diversification and contract acquisition strength.

📘 Review RHP at globecivilprojects.com

Disclaimer: This post is for educational purposes only and does not constitute financial advice. Please consult a SEBI-registered financial advisor before investing.