As of 10:30 AM, the IPO had received bids for over 22.11 crore shares. The highest interest came from non-institutional investors (NIIs), who subscribed 30.45 times their allotted quota. Retail investors followed with a subscription of 20 times, while qualified institutional buyers (QIBs) bid 8.16 times their reserved portion.
In the grey market, shares of Globe Civil Projects were trading at a premium of Rs 12, implying a potential listing gain of nearly 17% over the upper end of the price band.
Globe Civil Projects IPO details and use of proceeds
The IPO of Globe Civil Projects, which opened on June 24 and will close on June 26, is priced in the range of Rs 67–71 per share. Share allotment is expected on June 27, with the listing likely on July 1.
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-The company plans to use the net proceeds from the offering for three key purposes:
-To meet working capital requirements-To fund capital expenditure for the purchase of construction equipment and machinery-To support general corporate purposes
Company Overview: Globe Civil Projects
Headquartered in New Delhi, Globe Civil Projects is an integrated engineering, procurement, and construction (EPC) firm with operations across 11 Indian states—including Uttar Pradesh, Haryana, Delhi, Maharashtra, Andhra Pradesh, Karnataka, Gujarat, Chhattisgarh, Rajasthan, Uttarakhand, and Himachal Pradesh.
The company undertakes a wide range of projects across transportation, logistics, social and commercial infrastructure, as well as non-infrastructure segments such as commercial offices and housing. It is especially known for its work on educational institution buildings and railway infrastructure.
In recent years, the company has diversified into specialized segments, including railway bridges, airport terminals, elevated terminals, and hospitals.
IPO Lead Manager and Registrar
The book-running lead manager to the issue is Mefcom Capital Markets Limited, while KFin Technologies Limited is acting as the registrar.
Should You Subscribe to the IPO?
“The company reported de-growth in both its top and bottom lines in FY23. Based on recent financial data, the issue appears fully priced,” said Bajaj Broking in a note.
The issue is priced at a P/BV of 3.06 based on its NAV of Rs 23.24 as of December 31, 2024, and at a P/BV of 1.94 based on its post-IPO NAV of Rs 36.64 per share (at the upper price band).
“If we attribute FY25 annualized earnings to its post-IPO fully diluted paid-up equity capital, the asking price comes to a P/E of 17.88. Based on FY24 earnings, the P/E stands at 27.52. Thus, the issue is fully priced,” the brokerage added.
With this view, Bajaj Broking has assigned a ‘subscribe for long term’ rating to the IPO.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
