Globe Civil Projects IPO subscribed 7x on Day 1, QIB portion booked 8x; should you apply?

Globe Civil Projects provides construction-related services

The Rs 119 crore IPO of Globe Civil Projects saw strong investor interest on its first day of public bidding (June 24). The maiden public issue of the company was subscribed nearly seven times its offer size on Day 1.

The initial public offering of the New Delhi-headquartered EPC company received bids for over 8.17 crore shares, as against the offer size of 1.17 crore shares, according to data on NSE.

The portion kept of Non Institutional Investors (NII) has been subscribed over 8 times, while that kept for retail investors was subscribed nearly 6 times. Qualified Institutional Buyers (QIBs) significantly joined the subscription rally in the second half of the day, booking their reserved portion over 8 times.

The public issue will remain open for public bidding from June 24 to June 26 at a price band of Rs 67-71 apiece. The IPO entirely comprises a fresh issue of 1.67 crore equity shares worth Rs 119 crore.

Investors can apply for a minimum of 211 shares, requiring a minimum investment of Rs 14,981. The shares are likely to be listed on stock exchanges BSE and NSE on July 1.

Ahead of listing, the unlisted shares of the company were trading with a grey market premium (GMP) of over 21 percent over its IPO price at Rs 86 apiece, as per Investorgain.

Bajaj Broking has advised investors to subscribe to the public issue for the long term. “GCPL is engaged in EPC and MEP projects and related services. Till FY24, its primary focus was on educational institute projects, but now has diverse activities. If marked de-growth in top and bottom lines for FY23. Based on its recent financial data, the issue appears fully priced. As of March 31, 2025, its order book stood at Rs. 669+ cr. Well- informed investors may park moderate funds for medium to long term,” the brokerage said.

SBI Securities however held a ‘neutral’ outlook. However, D/E at 1.4x as of Dec'24 is relatively higher than its peers. Company's scale of operation is also very small which can impact financial performance if any project is stalled. Investors are advised to review the financial performance of the company post listing,” it said.

Canara Bank Securities also held a ‘Neutral’ rating, stating that investors with a long term view can consider the IPO. Kunwarji Wealth Solutions and Ventura maintained a ‘Subscribe’ rating with a long-term view.

A day before the IPO opened for public bidding, Globe Civil Projects raised Rs 35.7 crore from six institutional investors via anchor book on June 23. The company in its filing to exchanges said on June 23 that it has finalised allocation of 50.28 lakh shares to anchor investors at a price of Rs 71 per share.

Chanakya Opportunities Fund, Steptrade Revolution Fund, Lords Multigrowth Fund, and Compact Structure Fund are among six anchor investors.

Also read: Eppeltone Engineers shares make bumper market debut, list at 90% premium to SME IPO price

Globe Civil Projects is seeking a valuation of Rs 424 crore, and aims to utilise IPO proceeds for working capital requirement, and purchase of construction equipment/ machineries. The remainder of the funds will be used for general corporate purposes.

The company has 13 projects that are on going, including five social and commercial infrastructure projects, and four residential building projects. As of March 2025, the order book stood at Rs 669.1 crore. Mefcom Capital Markets is acting as the sole book running lead manager to the Globe Civil Projects IPO.

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