Globe Civil Projects IPO Opens Tomorrow: GMP, Price, Size, Review & Key Details in 10 Points

Globe Civil Projects IPO Set to Open: All You Need to Know in 10 Points

Mumbai, June 23, 2025 – Infrastructure player Globe Civil Projects Limited is all set to launch its initial public offering (IPO) on June 24, 2025. The IPO has generated strong interest from investors, especially in light of the company’s robust order book, sectoral tailwinds, and positive grey market premium (GMP) activity. Here's a detailed 10-point breakdown of the IPO, including its price, size, GMP, financials, and expert reviews.

1. IPO Opening and Closing Dates

The Globe Civil Projects IPO will open for subscription on June 24, 2025, and will close on June 26, 2025. Allotment will likely be finalized on June 27, with listing expected on either NSE SME or BSE SME on July 1, 2025.

2. IPO Price Band and Lot Size

The company has fixed the price band at ₹90 per share. The minimum lot size is 1,600 shares, amounting to a minimum investment of ₹1,44,000 for retail investors. The IPO is being issued at a face value of ₹10 per equity share.

3. Issue Size and Structure

The IPO is a fresh issue of 21.52 lakh shares, aggregating up to ₹19.37 crore. There is no offer-for-sale (OFS) component, indicating that all proceeds will be used for business expansion, working capital, and general corporate purposes.

4. Grey Market Premium (GMP)

According to sources tracking the unlisted market, the GMP for Globe Civil Projects IPO is ₹35–40 as of June 23. This indicates a potential listing gain of nearly 40%–44% over the issue price, reflecting strong investor sentiment.

5. Company Background

Globe Civil Projects is engaged in civil construction and infrastructure development across roads, highways, bridges, and irrigation systems. The company has executed multiple government and private projects, primarily in northern and eastern India. Its client base includes state governments, PSUs, and private developers.

6. Financial Performance

Globe Civil Projects has shown consistent growth in revenue and profits:

• FY23 Revenue: ₹48.6 crore

• FY23 Net Profit: ₹3.1 crore

• FY24 (H1) Revenue: ₹29.4 crore

• FY24 (H1) Net Profit: ₹2.2 crore

The company reported a PAT margin of around 6.4%, which is strong for an SME infrastructure firm.

7. Utilization of Proceeds

According to the Draft Red Herring Prospectus (DRHP), the net proceeds from the IPO will be used as follows:

• ₹12 crore for working capital needs

• ₹3 crore for equipment purchase

• ₹2 crore for debt repayment

• Remaining funds for general corporate purposes

8. Industry Outlook

The Indian infrastructure sector is poised for rapid expansion with significant government focus on roads, railways, and irrigation. According to a CRISIL report, the sector is expected to grow at a CAGR of 9% over the next five years, offering ample opportunities for mid-sized EPC players like Globe Civil Projects.

9. Analyst View and Risks

Analysts tracking the SME space have a cautiously optimistic view of the IPO:

“Globe Civil Projects has a healthy order book and decent financials. The GMP trend and reasonable valuation add to the appeal,” said Kunal Ramani, an SME market analyst.

“However, risks include dependence on government contracts, working capital intensity, and limited geographical diversification,” he added.

The P/E ratio stands at around 13x, which analysts deem fair given the company’s margins and growth outlook.

10. Investor Outlook

The IPO is suitable for investors seeking exposure to India’s infrastructure growth story through the SME route. However, since it is an SME IPO, it may involve higher volatility and limited liquidity post-listing. Retail investors with moderate risk appetite and a long-term investment horizon may consider subscribing.

The Globe Civil Projects IPO offers a compelling opportunity to invest in a promising infrastructure player at a reasonable valuation. While the company’s fundamentals and market sentiment are positive, investors should weigh the associated SME risks and read the prospectus carefully before subscribing.