Globe Civil Projects Shares Debut at 28% Premium over Issue Price with Strong Investor Response

Globe Civil Projects IPO Listing

The integrated engineering and construction specialist, Globe Civil Projects Limited, made an impressive debut on both BSE and NSE platforms on July 1, 2025. After closing its IPO bidding between June 24 - June 26, 2025, the company commenced trading with a substantial 28% premium on BSE and 26.76% premium on NSE, delivering strong returns to investors despite concerns over valuation. This book-building IPO raised ₹119 crore with an outstanding subscription of 80.97 times, reflecting exceptional investor confidence in the infrastructure construction sector as the company seeks to expand working capital requirements and enhance construction equipment capabilities for its diversified project portfolio.

Globe Civil Projects Listing Details

Globe Civil Projects Limited launched its IPO at ₹71 per share with minimum investment of 211 shares costing ₹14,981. The IPO received exceptional response with subscription of 80.97 times - NII segment leading at remarkable 143.14 times, QIB at 82.13 times, and retail at 53.67 times, demonstrating strong investor enthusiasm across all categories. The share price listed at ₹91.10 on BSE delivering an impressive 28% premium and ₹90 on NSE showing a solid 26.76% premium from issue price of ₹71.

Listing Price: The Globe Civil Projects share price opened at ₹91.10 on BSE and ₹90 on NSE on July 1, 2025, representing premiums of 28% and 26.76% respectively from the issue price of ₹71, delivering strong gains for investors at listing.

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First-Day Trading Performance Outlook

Globe Civil Projects delivered robust debut performance, exceeding market expectations with strong premiums on both exchanges reflecting positive investor sentiment towards infrastructure development companies. The company, incorporated in 2002, specialises in integrated EPC services with successful project execution across 11 states including Uttar Pradesh, Maharashtra, Karnataka, and Gujarat, completing 37 projects with 12 ongoing developments and substantial order book of ₹8,929.45 million.

Growth Drivers and Challenges

Growth Drivers:

• Strong Order Book: Robust pipeline of ₹8,929.45 million covering 14 projects across infrastructure and housing segments ensuring revenue visibility 
• Diversified Portfolio: Comprehensive EPC services spanning social, commercial, transport, logistics, and housing projects across multiple states 
• Established Track Record: 37 completed projects with ongoing operations in 11 states demonstrating execution capabilities

Challenges: 

• Fully Priced Valuation: Issue appears fully priced based on financial metrics with post-issue P/E of 17.88 
• High Debt Levels: Debt-to-equity ratio of 1.60 indicates leveraged operations requiring careful financial management 
• Revenue Volatility: Fluctuating revenue patterns across reporting periods raise consistency concerns

Utilisation of IPO Proceeds

• Working Capital: ₹75.00 crore for funding working capital requirements to support project execution and business operations Equipment Purchase: ₹14.26 crore for capital expenditure towards construction equipment and machinery procurement General Purposes: Remaining funds for strategic initiatives and operational requirements

Financial Performance of Globe Civil Projects

• Revenue: ₹256.74 crore for 9M FY25, showing recovery trajectory though below ₹334.81 crore in FY24 
• Net Profit: ₹17.79 crore in 9M FY25, demonstrating growth from ₹15.38 crore in FY24 
• Financial Metrics: ROE of 21.95%, ROCE of 23.07%, moderate PAT margin of 4.59%, and EBITDA margin of 13.44%

Globe Civil Projects represents a compelling investment in the infrastructure construction sector with strong listing performance delivering 28% premium on BSE. Despite valuation concerns, the company's substantial order book, diversified project portfolio, and established execution capabilities provide significant growth potential in India's expanding infrastructure development landscape.