IPO Details:

• IPO Open Date: June 24, 2025
• IPO Close Date: June 26, 2025
• Price Band: ₹67 to ₹71 per share
• Issue Size: ₹119.00 crore (entirely a fresh issue)
• Lot Size: 211 shares Listing: BSE & NSE
• Lead Manager: Mefcom Capital Markets
• Registrar: Kfin Technologies

Tentative IPO Timeline:

IPO Open Date	Tue, Jun 24, 2025
IPO Close Date	Thu, Jun 26, 2025
Tentative Allotment	Fri, Jun 27, 2025
Initiation of Refunds	Mon, Jun 30, 2025
Credit of Shares to Demat	Mon, Jun 30, 2025
Tentative Listing Date	Tue, Jul 1, 2025
Cut-off time for UPI mandate confirmation	5 PM on June 26, 2025

Objective

The primary objectives for Globe Civil Projects Limited raising funds through this IPO (which is entirely a fresh issue, meaning the money goes to the company) are:

1. Funding Working Capital Requirements: A significant portion of the IPO proceeds (₹75.00 crore out of ₹119 crore) is earmarked for meeting the company’s working capital needs. In the construction industry, this is crucial for day-to-day operations, covering expenses like raw materials, labor, and short-term operational costs, which are vital for project execution.
2. Funding Capital Expenditure (Purchase of Equipment/Machinery): The company plans to utilize ₹14.26 crore from the IPO for acquiring new construction equipment and machinery. This investment will enhance their operational capacity, efficiency, and potentially allow them to take on larger and more complex projects, contributing to future growth.
3. General Corporate Purposes: The remaining funds will be used for general corporate purposes. This provides the company with financial flexibility to address various business needs, including strategic initiatives, unforeseen expenses, marketing, and general administrative costs.

Essentially, the IPO is aimed at strengthening the company’s financial base to support its growth trajectory in the burgeoning Indian infrastructure sector.

Pros (Strengths):

1. Strong Order Book and Revenue Visibility: The company has a robust order book (around ₹669.10 crore as of March 31, 2025, which is approximately 2.5 times FY24 revenue). This provides a good pipeline of future work and revenue visibility, which is a key indicator for EPC companies.
2. CPWD Class-1 Super Contractor Status: This is a significant competitive edge, allowing Globe Civil Projects to bid for large government projects up to ₹650 crore. This opens doors to high-value contracts and potentially less intense competition for such specific bids.
3. Impressive Recent Financial Performance: The company has shown significant growth in Profit After Tax (PAT) in FY24 (₹15.38 crore, up from ₹4.85 crore in FY23) and even stronger performance in 9M FY25 (₹17.78 crore). Revenue also jumped in FY24 after a dip in FY23, showing recovery and growth.
4. Experienced Management Team: The company boasts experienced promoters and a management team with a long track record in the construction industry, which is crucial for project execution and strategic decision-making.
5. Diversified Project Portfolio and Geographical Presence: While having strengths in certain areas, the company has diversified its project types (transport, social, commercial, non-infrastructure, MEP) and operates across 11 states, reducing concentration risk to some extent.
6. Beneficiary of Infrastructure Boom: India’s massive government capital expenditure and focus on infrastructure development create a highly conducive environment for EPC companies like Globe Civil Projects.
7. IPO for Growth Capital: The fact that the entire issue is a fresh issue means all the proceeds go into the company, directly funding its working capital and expansion plans, which is generally viewed positively by investors.

Cons (Weaknesses/Risks):

1. High Debt-to-Equity Ratio: The company’s debt-to-equity ratio (around 1.4x-1.6x as of recent periods) is relatively high. While the IPO aims to improve working capital, high debt can lead to significant interest expenses and limit financial flexibility, especially in a capital-intensive industry.
2. Revenue Concentration Risk: A substantial portion of the company’s revenue (historically over 90% from the top ten projects, and a notable percentage from CPWD) is concentrated. Any delays, cancellations, or payment defaults from these key projects or clients could severely impact the company’s financials.
3. Project Execution and Operational Risks: As with any construction company, Globe Civil Projects faces inherent risks of project delays, cost overruns due to unforeseen site conditions, regulatory hurdles, or raw material price fluctuations.
4. Highly Competitive Industry: The EPC sector is intensely competitive, with numerous large and small players. This can lead to pricing pressure, affecting profit margins and requiring constant efforts to win new bids.
5. Volatility in Bid Success Rate: A reported dip in the bid success rate for 9M FY25 compared to FY24 indicates potential challenges in consistently securing new orders, which is vital for sustained growth.
6. Working Capital Intensive: Despite raising funds for working capital, the nature of the construction business means it remains highly working capital intensive, and delays in client payments can impact liquidity.
7. Joint Venture Risks: Participation in joint ventures means the company is exposed to the risks of its JV partners’ performance, which could lead to additional financial and performance obligations.
8. Valuation Concerns (Relative): While current P/E might seem reasonable, comparing it to larger, more established peers with better financial metrics (like lower debt, higher RoNW) is crucial. Analysts often advise caution due to the relatively smaller scale of operations.

About Globe Civil Projects Limited,

Company Overview:

Founded in 2002 and headquartered in New Delhi, Globe Civil Projects Limited specializes in executing a wide range of infrastructure and non-infrastructure projects across India. With over two decades of experience, the company has completed projects in 11 Indian states. They are involved in the entire project lifecycle, from design and engineering to procurement, execution, and quality control.

Core Business: Globe Civil Projects’ core business encompasses various segments:

• Infrastructure – Transport & Logistics: This includes projects like railway terminals, bridges, and airport terminals.
• Infrastructure – Social & Commercial: Focuses on educational institutions, hospitals, and public utility buildings.
• Non-Infrastructure Projects: Includes commercial office spaces and residential housing.
• Trading Activities: Primarily involved in trading construction materials, specifically TMT steel.
• MEP Services: Offers integrated Mechanical, Electrical & Plumbing (MEP), HVAC, firefighting, and fire alarm systems as part of turnkey projects.

While their primary strength has been in educational institution buildings and railway infrastructure, they have diversified into more complex projects like railway bridges, airport terminals, and elevated railway terminals.

Market Position:

• CPWD Class-1 Super Contractor: Globe Civil Projects holds a Class-1 Super Contractor license with the Central Public Works Department (CPWD), Government of India. This enables them to bid for large government projects up to ₹650 crore, enhancing their project scale and reducing competitive intensity in larger bids.
• Proven Track Record: The company has successfully completed 37 projects over the last two decades and has 13 ongoing projects across different infrastructure categories as of March 31, 2025.
• Robust Order Book: As of March 31, 2025, their consolidated order book stood at ₹669.10 crore (approx. 2.5 times FY24 revenue and 2.0x of 9MFY25 annualized revenue), providing healthy revenue visibility for the near term.
• Diversified Geographical Presence: They have undertaken projects in 11 states across India.

Future Outlook:

• Capitalizing on Infrastructure Boom: The IPO aims to leverage the ongoing infrastructure development and government capital expenditure in India. The construction sector is a significant contributor to India’s GVA, with steady growth expected, which directly supports companies like Globe Civil Projects.
• Funding Working Capital and Capex: The IPO proceeds are entirely a fresh issue and will be primarily used for working capital requirements and investment in new equipment and machinery. This infusion of capital is expected to support their expansion plans and execution of current and future projects.
• Strategic Diversification: The company’s expansion into specialized projects and services (like MEP) indicates a strategy to capture a broader market and enhance revenue streams.
• Reduced Dependency on CPWD: While historically reliant on CPWD projects, recent trends show a decreasing percentage of revenue from CPWD, indicating diversification of their client base.

Challenges:

• High Debt-to-Equity Ratio: As of December 2024, the company’s debt-to-equity ratio was 1.4x (or 1.6x in some reports for March 2024), which is relatively high compared to some peers in the industry. While common in capital-intensive construction, it requires careful monitoring of cash flow and interest coverage.
• Project Delays and Cost Overruns: As with any EPC company, Globe Civil Projects is susceptible to risks associated with project delays, cost overruns, and quality issues.
• Dependency on Key Projects: The company’s revenue remains highly concentrated, with its top ten projects contributing, on average, over 90% of total revenue in recent fiscal years. Any delay or loss of these significant projects could severely impact their financials.
• Competitive Bidding Environment: The EPC sector is highly competitive, requiring the company to continuously bid for projects and maintain strong bidding success rates. A recent dip in bid success rate (9.09% for 9M FY25 compared to 54.55% in FY24) is a point to watch.
• Fluctuations in Raw Material Prices: Changes in the prices of construction materials like TMT steel can impact project costs and profitability.
• Government Payment Delays: Delays in payments from government entities (like CPWD) can impact the company’s cash flow and working capital management.
• Joint Venture Risks: A portion of their revenue comes from projects undertaken in joint ventures. The failure of a JV partner to perform obligations could lead to additional financial burdens.

So,How Does Globe Civil Projects, IPO Fare in Terms of Financials ?

Globe Civil Projects Limited- Financial Data

Period Ended	31 Dec 2024	31 Mar 2024	31 Mar 2023	31 Mar 2022
Assets	374.60	317.83	275.04	229.79
Revenue	256.74	334.81	235.17	286.78
Profit After Tax	17.79	15.38	4.85	5.20
EBITDA	39.30	44.65	20.80	22.91
Net Worth	99.83	77.67	62.44	57.45
Reserves and Surplus	56.87	75.19	59.97	54.98
Total Borrowing	137.97	124.48	97.00	70.76
Amount in ₹ Crore

Key Positives:

• Revenue: Witnessed a significant jump in FY24 after a dip in FY23. The 9M FY25 revenue also indicates continued growth.
• Profit After Tax (PAT): Showed substantial growth in FY24, increasing over 200% from FY23. The PAT for 9M FY25 is already higher than the full FY24 PAT, indicating strong recent profitability.
• Order Book: Has seen healthy growth, providing good revenue visibility.

Key Perfomance Indicator(KPI)

KPI	Values
ROE	21.95%
ROCE	23.07%
Debt/Equity	1.60
RoNW	19.80%
PAT Margin	4.59%
EBITDA Margin	13.44%
Price to Book Value	3.92

Competitive Analysis:Globe Civil Projects Limited Market Peers:

The competitive landscape for Globe Civil Projects can be broken down into different tiers:

1. Large-Cap, Diversified EPC Giants (Direct & Indirect Competitors): These are the behemoths of the Indian infrastructure space. While Globe Civil Projects might not directly compete with them on every single project, they set industry benchmarks for execution, technology, and scale. They often handle mega-projects that Globe Civil Projects may not yet bid for individually.

• Larsen & Toubro (L&T): The undisputed market leader, involved in almost every aspect of infrastructure, defense, and heavy engineering. Their scale, technological prowess, and financial strength are unparalleled.
• Tata Projects: Another major player from a prominent group, executing large-scale projects in urban infrastructure, rail, power, etc.
• GMR Airports Infrastructure Ltd: A major developer and operator of airports and related infrastructure.
• IRB Infrastructure Developers Ltd: Focused heavily on road and highway projects (BOT/HAM models).

2. Mid-to-Large Cap Listed EPC Companies (More Direct Peers, though still larger): These companies are closer in scope to Globe Civil Projects, often bidding for similar government and private sector projects, though many are still significantly larger in terms of revenue and market capitalization.

• Rail Vikas Nigam Ltd (RVNL) & Ircon International Ltd: Both are railway PSU contractors, which could be direct competitors for railway infrastructure projects, a key segment for Globe Civil Projects. RVNL and Ircon have much larger order books and execution capabilities.
• NBCC (India) Ltd: Another PSU, primarily involved in civil construction projects for government bodies, including social infrastructure and urban development, aligning with Globe Civil’s segments.
• Kalpataru Projects International Ltd (KPIL): A large EPC player, strong in power transmission, railways, and B&F (Building & Factories).
• Ahluwalia Contracts (India) Ltd: Well-known for building construction (residential, commercial, institutional), a segment where Globe Civil also operates.
• Psp Projects Ltd: Another significant player in the building construction segment, known for fast execution.
• Capacit’e Infraprojects Ltd: Primarily focused on high-rise residential, commercial, and institutional buildings.
• B.L. Kashyap and Sons Ltd: A diversified construction company with a focus on buildings and infrastructure.
• Ceigall India Limited: A strong player in road and highway construction.

3. Unlisted and Regional Players: A significant portion of the Indian construction market is fragmented, with many unlisted regional and local contractors. Globe Civil Projects would compete extensively with these firms for smaller to mid-sized projects, especially in the states where they have a strong presence

Globe Civil Projects Limited IPO GMP

As of Thursday, June 19, 2025, the Grey Market Premium (GMP) for Globe Civil Projects Limited IPO is ₹7 to ₹9 per share.

Disclaimer:

• IPO Grey Market Premium (Globe Civil Projects Limited IPO GMP) mention is valid for the specific date as mentioned in the header.
• We are not buying and selling IPO forms on IPO Grey Market.
• Don’t decide to subscribe to an IPO just based on the initial price, as it can change before the listing.Subscribe only considering Fundamentals of the companies.

Globe Civil Projects Limited IPO

🔴 Live Subscription Status 🔴

24/06/2025 10:00 AM

	NO OF SHARES OFFERED	Day 1	Day 2	Day 3
Qualified Institutional Buyers(QIBs)
Non Institutional Investors(NIIs)
Retail Individual Investors(RIIs)
Employees
Total

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