The initial public offering of Globe Civil Projects, a New Delhi-headquartered EPC company, has kicked off with strong investor interest. On its first day of public bidding, June 24th, the Rs 119 crore IPO was subscribed nearly seven times its offer size. According to data from the NSE, the company received bids for over 8.17 crore shares against an offer size of 1.17 crore shares.
Subscription Details
Delving into the subscription figures, the portion reserved for Non-Institutional Investors (NII) saw robust demand, being subscribed over 8 times. Retail investors also showed significant interest, with their portion subscribed nearly 6 times. Notably, Qualified Institutional Buyers (QIBs) joined the subscription rally in the latter half of the day, booking their reserved portion over 8 times. This widespread interest across all investor categories underscores confidence in the company’s prospects.
Key IPO Details
The public issue of Globe Civil Projects will remain open for subscription until June 26th. The price band for the IPO has been set at Rs 67 to Rs 71 per share. This IPO is entirely a fresh issue, comprising 1.67 crore equity shares, aiming to raise Rs 119 crore. Investors can apply for a minimum of 211 shares, which translates to a minimum investment of Rs 14,981. The shares are tentatively scheduled to be listed on both the BSE and NSE on July 1st.
Grey Market Premium (GMP)
Ahead of its official listing, the unlisted shares of Globe Civil Projects are commanding a healthy grey market premium (GMP). As per Investorgain, the GMP is hovering over 21 percent above its IPO price, trading at Rs 86 apiece. This indicates positive sentiment in the unofficial market and suggests a potentially strong listing.
Expert Opinions: To Apply or Not to Apply?
When it comes to expert recommendations, there’s a mixed bag of opinions. Bajaj Broking has advised investors to subscribe to the public issue with a long-term view. They highlight GCPL’s engagement in EPC and MEP projects and its diversified activities beyond its initial focus on educational institute projects. While acknowledging a de-growth in top and bottom lines for FY23, they point out the company’s strong order book, which stood at over Rs 669 crore as of March 31, 2025. Bajaj Broking suggests that well-informed investors may park moderate funds for medium to long term.
However, SBI Securities has adopted a ‘neutral’ outlook. They noted that the company’s debt-to-equity ratio of 1.4x as of December 2024 is relatively higher compared to its peers. Additionally, they highlighted the company’s relatively small scale of operations, which could impact financial performance if any project faces stalling. SBI Securities advises investors to review the financial performance of the company post listing.
Similarly, Canara Bank Securities has also given a ‘Neutral’ rating, suggesting that investors with a long-term view can consider the IPO. On a more positive note, Kunwarji Wealth Solutions and Ventura have both maintained a ‘Subscribe’ rating, also with a long-term perspective.
Anchor Investors and Company Utilization Plans
Prior to the public bidding, Globe Civil Projects successfully raised Rs 35.7 crore from six institutional investors via an anchor book on June 23rd. The company confirmed in a filing that it allocated 50.28 lakh shares to these anchor investors at Rs 71 per share. Notable anchor investors include Chanakya Opportunities Fund, Steptrade Revolution Fund, Lords Multigrowth Fund, and Compact Structure Fund.
Globe Civil Projects is seeking a valuation of Rs 424 crore. The company plans to utilize the IPO proceeds primarily for working capital requirements and the purchase of construction equipment and machinery. The remaining funds will be allocated for general corporate purposes.
The company currently has 13 ongoing projects, which include five social and commercial infrastructure projects and four residential building projects. As of March 2025, their order book stands at a robust Rs 669.1 crore. Mefcom Capital Markets is serving as the sole book-running lead manager for the Globe Civil Projects IPO.