Globtier Infotech Makes Poor Debut with 20% Discount, Hitting Lower Circuit

Globtier Infotech Limited, the managed IT and SAP support service provider, made a poor debut on the BSE SME on September 2, 2025. After closing its IPO bidding between August 25-28, 2025, the company commenced trading with a significant 20% discount at ₹57.60, falling well below the issue price of ₹72 and hitting the 5% lower circuit, reflecting weak investor confidence in the IT services sector.

Globtier Infotech Listing Details

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

Globtier Infotech Limited launched its IPO at ₹72 per share with a minimum investment of 3,200 shares costing ₹2,30,400. The IPO received a weak response with a subscription of only 1.34 times - individual investors at 2.04 times and NII at just 0.63 times, indicating poor investor interest across categories in the IT services business.

First-Day Trading Performance Outlook

• Listing Price: The Globtier Infotech share price opened at ₹57.60 on BSE SME, representing a discount of 20% from the issue price of ₹72, delivering significant losses for investors and hitting the lower circuit limit.

Growth Drivers and Challenges

Growth Drivers:

Comprehensive Service Portfolio: Offers diverse IT solutions, including IT facilities management, application support and development, digital transformation, and cloud solutions, catering to various business verticals.

Strong Financial Metrics: Outstanding ROE of 31.55%, impressive ROCE of 47.68%, healthy PAT margin of 5.82%, and solid EBITDA margin of 12.47% indicating operational efficiency.

Experienced Team: Established since 2012 with 707 full-time employees providing managed IT and SAP support services with a focus on customised client solutions.

Profit Growth: PAT increased by 47% to ₹5.50 crore in FY25, demonstrating improved operational performance and margin expansion.

Challenges:

• Poor Market Reception: Significant discount at listing and hitting lower circuit indicates severe investor concerns about business prospects and valuation in the competitive IT services market.
• Weak Subscription: Low subscription of 1.34 times with NII undersubscription at 0.63 times, reflecting institutional investor scepticism about growth potential.
• Modest Revenue Growth: Revenue increased by only 7% to ₹94.81 crore in FY25, indicating limited market expansion in the competitive IT services sector.
• Pre-IPO Performance Concerns: A Sudden boost in financial metrics in the pre-IPO year raises questions about the sustainability and authenticity of improved performance.

Utilisation of IPO Proceeds

• Working Capital Requirements: ₹11.50 crore for funding working capital needs, supporting IT service operations and business expansion initiatives.
• Debt Reduction: ₹8.30 crore for repayment or prepayment of loans, improving capital structure and reducing financial leverage burden.
• General Corporate Purposes: ₹4.09 crore for general corporate purposes supporting business operations and strategic initiatives.

Financial Performance of Globtier Infotech

• Revenue: ₹94.81 crore for FY25, showing modest growth of 7% from ₹88.27 crore in FY24, reflecting steady but limited demand for IT services.
• Net Profit: ₹5.50 crore in FY25, representing strong growth of 47% from ₹3.74 crore in FY24, indicating improved operational efficiency.
• Financial Metrics: Strong ROE of 31.55%, impressive ROCE of 47.68%, moderate debt-to-equity ratio of 0.60, solid RoNW of 31.55%, healthy PAT margin of 5.82%, robust EBITDA margin of 12.47%, reasonable Price to Book Value of 1.86, and market capitalisation of ₹108.87 crore.