Globe Civil Projects IPO GMP Signals Strong Debut — Check Details Here

Globe Civil Projects Ltd. is set to launch its initial public offering (IPO) to raise nearly Rs 120 crore from the primary market.

The engineering, procurement and construction (EPC) company’s IPO is scheduled to open for subscription on June 24.  The company has executed projects across 11 states in India.

Investors who want to bid for shares in this IPO must check the following details before making an investment call.

According to InvestorGain, the grey market premium (GMP) for the Globe Civil Projects IPO stood at Rs 15 apiece as of 3:50 p.m. on June 23. The latest GMP indicates a listing price of Rs 86 per share at a premium of 21.13%, compared to the upper limit of the price band.

Note: GMP does not represent official data and is based on speculation.

The Globe Civil Projects IPO is a book-building issue worth Rs 119 crore. The mainboard issue comprises entirely a fresh issue of 1.68 crore shares.

The price band for the IPO has been set at Rs 67 to Rs 71 per share.

To invest, retail investors need to bid for a single lot size of 211 shares, requiring an investment of Rs 14,981. Small Non-Institutional Investors need to bid for at least 14 lots comprising 2,954 shares. It will amount to an investment of Rs 2,09,734. Big Non-Institutional Investors can participate by bidding for 67 lots, having a total of 14,137 shares. It requires an investment of Rs 10,03,727. 

The company has reserved up to 50% of the net issue size for the Qualified Institutional Buyers (QIBs). At least 35% of the net issue is reserved for retail investors. A minimum of 15% of the net offer size will be allocated to Non-Institutional Investors (NIIs).

Mefcom Capital Markets Ltd. is the book-running lead manager for the issue and KFin Technologies Ltd. is the registrar.

The subscription window for the IPO will close on June 26. The IPO share allotment status is expected to be finalised on June 27. Shares are expected to be credited to the Demat accounts of successful bidders on June 30 and refunds for the non-allottees will also be processed on the same day.

Shares of the company are proposed to be listed on the NSE and BSE on July 1. 

It is an EPC company primarily engaged in infrastructure projects in the transport and logistics sectors. It also does non-infrastructure projects, such as building commercial offices and housing. 

Use Of Proceeds

The company will use proceeds from the IPO to fund working capital requirements, buy equipment and for general corporate purposes. 

Financials

The company reported a 217% year-on-year jump in profit after tax (PAT) to Rs 15.38 crore in FY24 from Rs 4.85 crore in FY23. Its revenue increased to Rs 334.81 crore in FY24 from Rs 235.17 crore in the preceding fiscal.

For the nine months ended Dec. 31, 2024, PAT stood at Rs 17.79 crore and revenue from operations at Rs 254.66 crore.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.