Globe Civil Projects IPO grey market premium rises to 20%. Check subscription status, and other details here

The initial public offering (IPO) of Globe Civil Projects opened for public subscription today and has been subscribed 13% so far. The shares of the company are currently trading at a grey market premium (GMP) of 19.7%, or Rs 14–15.

Around 10:15 am today, the IPO saw robust interest from non-institutional investors (NIIs), who subscribed to 41% of their allotted quota, followed by retail investors at 17%.

Qualified institutional buyers (QIBs) had not placed any bids yet.

About Globe Civil Projects IPO

The company proposes to utilise the net proceeds for three main purposes. First, a portion will be allocated to meet its working capital requirements. Second, the funds will be used for capital expenditure towards the purchase of construction equipment and machinery. Lastly, the remaining proceeds will be used for general corporate purposes.

Globe Civil Projects IPO key dates

The issue opened on June 24 and will close on June 26. Share allotment is expected on June 27, while the stock is likely to be listed on exchanges on July 1.

Globe Civil Projects IPO price band

The price band for the issue is set at Rs 67 to Rs 71 per share.

Book running lead manager to the issue

Mefcom Capital Markets Limited is the lead manager, while KFin Technologies Limited is the registrar to the issue.

About Globe Civil Projects

Globe Civil Projects is an integrated engineering, procurement, and construction (EPC) company headquartered in New Delhi. It has undertaken projects across 11 Indian states, including Uttar Pradesh, Haryana, Delhi, Maharashtra, Andhra Pradesh, Karnataka, Gujarat, Chhattisgarh, Rajasthan, Uttarakhand, and Himachal Pradesh.

The company is engaged in executing infrastructure projects such as transport and logistics infrastructure, as well as social and commercial infrastructure. It also undertakes non-infrastructure projects like commercial offices and housing developments.

While its core strength lies in constructing educational institution buildings and railway infrastructure, the company has diversified into specialised infrastructure and non-infrastructure projects—such as railway bridges, airport terminals, elevated railway stations, and hospitals.

Should you subscribe to Globe Civil Projects IPO?

“There is marked de-growth in the top and bottom lines for FY23. Based on recent financials, the issue appears fully priced,” said Bajaj Broking in its 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 the post-IPO NAV of Rs 36.64 per share (at the upper band).

“If we attribute FY25 annualised earnings to the post-IPO fully diluted equity capital, the asking price translates 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 note added.

Bajaj Broking has assigned a ‘subscribe for long term’ rating to the issue.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)