The initial public offering (IPO) of Globe Civil Projects Limited has seen significant investor interest, with the issue being oversubscribed by 22.26 times by 11:00 AM on the third and final day of bidding, June 26, 2025. The IPO, which opened on June 24, 2025, aims to raise ₹119 crore through the issuance of fresh shares. The price band for the IPO has been fixed at ₹67 to ₹71 per equity share.
Subscription Status
The strong subscription numbers reflect positive investor sentiment towards the company. Here’s a breakdown of the subscription status across different investor categories as of 11:00 AM on day 3:
The robust demand across all investor categories indicates a strong belief in the company's growth potential and business model. According to data on BSE, the company received bids for 17,91,18,955 shares against 1,17,32,392 shares on offer on day 2.
Grey Market Premium (GMP)
Ahead of the IPO allotment, the grey market premium (GMP) provides an unofficial indication of the expected listing performance. Market observers reported that the shares of Globe Civil Projects Limited were trading at a premium of ₹16 in the grey market on June 26, 2025. However, another source indicates a GMP of ₹13 as of today.
IPO Details
Company Overview
Globe Civil Projects Limited operates in the Indian urban infrastructure sector and has executed over 55 projects since its inception. As of FY24, the company had an order book exceeding ₹900 Cr. The company maintains strong EBITDA margins (33.2% in FY24) and reported a 3-year revenue CAGR of ~8%. The IPO is a fresh issue and aims to fund working capital needs and strengthen the balance sheet to support future growth. As of August 31, 2024, the company's total order backlog stood at ₹8,929.45 million, covering 14 different projects.
Financial Performance
In 2024, the company reported revenue of ₹334.81 crores against ₹235.17 crore in 2023. The company reported a profit of ₹15.38 crores in 2024 against a profit of ₹4.85 crores in 2023.
Investment Considerations
Investors should note the company's financial metrics such as its price-to-book ratio of ₹3.92 as of March 31, 2025, a PAT margin of 4.59, and a debt-equity ratio of 1.60.
Final Thoughts
The Globe Civil Projects IPO has garnered substantial interest, evident from the oversubscription. The final decision to invest rests on individual risk appetite, investment horizon, and thorough research. The allotment for the IPO is expected to be finalized on June 27, 2025, and the shares are tentatively scheduled to be listed on July 1, 2025.
