Globe Civil Projects IPO Subscribed 7x on Day 1; GMP Surges, Here’s What Brokerages Have To Say

Globe Civil Projects IPO: The initial public offering (IPO) of Globe Civil Projects received strong response from investors on the first day of its subscription on Tuesday, June 24. The mainboard segment IPO was subscribed by nearly 6.9 times today, leading to a surge in its grey market premium (GMP).

Globe Civil Projects IPO's GMP pointed upwards on Tuesday and stood at Rs 15 with a price band of 71, according to the data available on Chittorgarh as 5 pm on Tuesday. The current GMP hints at a strong listing of Globe Civil IPO with an estimated listing price of Rs 86 (including its cap price and current GMP).

Globe Civil Projects IPO Subscription Day 1

According to Chittorgarh website, Globe Civil Projects IPO was subscribed by 6.97 times. It included the subscription of the public issue by 5.84 times in the retail category, 8.06 times in the qualified institutional buyers (QIB) category and 8,17 times in the NII category by 5 pm on Tuesday.

The New Delhi-headquartered integrated Engineering, Procurement and Construction (EPC) company has planned to bring 1,17,32,392 crore of shares as part of its IPO issue. THe IPO price band has been fixed at Rs 67-71 per share on BSE. The minimum bid quantity for QIB has been fixed at 11732233 shares, whereas the maximum bid quantity for non institutional investors has been fixed at 8380076 shares.

Globe Civil Projects IPO Details

Globe Civil Projects IPO opened for subscription on Tuesday, June 24 and is scheduled to close on June 26, Friday. Strengthening its footing in India's construction market, Globe Civil Projects, is actively pursuing growth by focusing on government contracts which makes up 64.7% of its order book, noted Arihant Capital in its report.

The brokerage maintained a 'Neutral' rating for Globe Civil Projects IPO, Arihant Capital mentioned that the company has an expertise in building schools, railway infrastructure, and hospitals. "Its scalable approach and solid financial growth, with a 7.82% revenue CAGR from FY22 - FY24, position it as a strong player in meeting India's infrastructure needs. At the upper band of INR 71, the issue is valued at an EV/EBITDA of 11.8x, based of annualized FY25 EBITDA of INR 524 Mn and a P/E ratio of 17.88x, based on a FY25 EPS of INR 4. We are recommending a "Neutral" rating for this issue," noted Arihant Capital in its report.

Globe Civil Projects IPO: Key Highlights, Risks

Globe Civil Project's strong project management, robust order book, expansion plans are few of its top highlights, according to SBI Securities. However, concentration of business activities in single region like Delhi, inability to win tender and execute expansion plans, delay or cancellation of orders, and high working capital requirements are the key risks related to the company, added the brokerage in its report.

"Company's scale of operation is also very small which can impact financial performance if any project is stalled. Investors are advised to review the financial performance of the company post listing. We maintain NEUTRAL outlook on the company," noted SBI Securities in its report on Globe Civil IPO.

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