Globe Civil Projects IPO & GMP: What Investors Should Know
Introduction
Globe Civil Projects, a Delhi‑based infrastructure engineering, procurement, and construction (EPC) specialist, launched its ₨119 crore IPO between June 24–26, 2025, with shares priced at ₨67–71 per share. The offering has drawn attention due to a strong grey market premium (GMP), indicative of high pre-listing enthusiasm. This in-depth blog post, spanning around 1000 words, examines the IPO details, GMP dynamics, subscription trends, financials, analyst outlook, and investment implications. Content is structured with clear headings, tables, and lists to aid professional understanding.
IPO Basics & Transaction Structure
Key Details
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IPO Size: ₨119 crore (fresh issue only)
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Price Band: ₨67 to ₨71 per share
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Lot Size: 211 shares (₨14,981 at upper band)
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Allocation Quota:
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QIB: up to 50%
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Retail: ≥35%
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NII: ≥15%
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Timeline:
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Subscription: Jun 24–26
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Allotment: Jun 27–28
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Listing: Likely Jul 1
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Purpose of Funds
| Use of Funds | Amount | Purpose |
|---|---|---|
| Working capital | ₨75 crore | Support ongoing projects and operations |
| Capital expenditure | ₨14.26 crore | Purchase of construction equipment |
| General corporate purposes | Remaining | Strengthen balance sheet and fund flexibility |
What the Grey Market Premium (GMP) Indicates
Current GMP Snapshot
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Mint, ET & Moneycontrol report GMP of ₨14 per share (~20%)
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Moneycontrol & Republic Business indicate GMP near ₨15 (~21%)
A 20% GMP suggests strong anticipated demand on listing, though grey market figures aren’t guarantees.
Significance of GMP
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Positive sentiment gauge: Indicates bullish investor expectations.
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Pre-listing valuation signal: Predicts possible listing price near ₨86–₨90.
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Investor caution: GMP can shift quickly, especially in volatile markets.
On-Day Subscription & Investor Behavior
By midday on June 24 (first day of the IPO), key metrics revealed:
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Overall subscription: 0.94× (94% covered in first day)
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Retail segment: 1.29×
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NII segment: 1.37×
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QIBs: Minimal participation early on
Moneycontrol reported full subscription for retail and NII portions within 90 minutes indicating strong initial traction; QIB momentum typically accelerates toward closing.
Company Overview & Order Book
Globe Civil Projects, founded in 2002 and headquartered in New Delhi, operates across 11 states, executing projects spanning:
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Transport & logistics
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Social infrastructure (schools, hospitals)
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Non-infrastructure (commercial offices, housing)
Project Footprint
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37 completed projects
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12 ongoing projects
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Order book: ₨669–892 crore (2× annual revenues)
Financial Performance
For FY24 and 9MFY25, key financials include:
| Metric | FY24 | 9MFY25 Annualized |
|---|---|---|
| Revenue | ₨334.8 crore | ₨256.7 crore (9M) |
| Net Profit | ₨15.38 crore | ₨17.79 crore (9M) |
| Revenue Growth (CAGR) | ~42% YoY | — |
| Profit Growth | ~217% YoY | — |
| Order Book | ₨892.9 crore (Aug 2024) | ₨669.1 crore (Mar 2025) |
Valuation – Pricing & Multiples
Pre-IPO Valuations
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P/BV: 3.06× (FY24 NAV), 1.94× (post-IPO NAV)
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P/E: 27.5× (FY24), 17.9× (9MFY25 annualized)
Comparable to mid‑cap EPC peers; reasonably priced for growth but pricing fully reflects potential.
Analyst Ratings & Perspectives
| Broker | Rating | Highlights |
|---|---|---|
| Bajaj Broking | Subscribe (Long-term) | Solid margins, order book; small-cap and sectoral risks |
| Ventura, Kunwarji | Subscribe | Favor long-term; fresh issue, pipeline |
| SBI Securities | Neutral | High D/E, small scale; watch post-listing performance |
| Canara, Arihant, others | Neutral/Sub accordingly | Good growth; cautious due to valuation |
Risks & Considerations
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High leverage: D/E ~1.4×
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Scale limitations: Smaller project base increases vulnerability
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Sector exposure: Reliance on government contracts brings policy and budget dependency
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Execution delays: EPC projects are prone to regulatory hurdles
Should You Apply?
For Short-Term Traders
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Positive GMP signals potential 20% listing gain.
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Volatility and post-listing correction risks warrant caution.
For Long-Term Investors
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Quality order book, growth record, and operating margins support long-term view.
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Recommend subscribing if aligned with infrastructure sector exposure and risk appetite.
Conclusion
Globe Civil Projects IPO has captured significant attention, underpinned by a robust grey market premium of ~20%, quick subscription across retail and NII segments, and strong financial performance. The company’s healthy order book and growth metrics suggest long-term investment merit, while valuations reflect expected future progress.
Short-term investors might gain from listing momentum, but must remain alert to market volatility. Long-term investors with conviction in India’s infrastructure trajectory could view this IPO as a worthy bet in the small-cap EPC space. As the listing unfolds, monitoring QIB participation, GMP movement, and liquidity trends will be key.
Disclaimer: This is not financial advice. Investors should consult certified advisors and conduct personal due diligence before making investment decisions.
