Globe Civil Projects shares to list on July 1 after whopping 86 times subscription; Experts advise caution

Globe Civil Projects shares to list on July 1 after whopping 86 times subscription.

Globe Civil Projects shares will list on the BSE and NSE on Tuesday, July 1, after the company’s Rs 119-crore initial public offering (IPO) garnered strong investor response with a subscription of 86.03 times.

The Globe Civil Projects IPO, open between June 24 and 26, saw bids for over 100 crore shares against 1.17 crore shares on offer. The public issue was fully subscribed on the first day of bidding.

Despite the robust subscription numbers, analysts have advised investors to remain cautious.

Mahesh M. Ojha, AVP – Research & Business Development at Hensex Securities Pvt Ltd, said the company may witness a decent listing backed by the high demand. "While listing gains are likely due to sentiment-driven demand, investors should approach with caution," he said.

"Those entering purely for short-term gains may consider exiting at a premium, whereas holding beyond listing would depend on further clarity about its business model, order book strength, and earnings potential," he added.

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Harshal Dasani, Business Head at INVasset PMS, said the IPO witnessed strong interest across investor categories, with non-institutional investors subscribing 143 times. The IPO was priced in the Rs 67–71 band and was anchored at the upper end. The lot size was fixed at 211 shares.

According to Dasani, the shares are quoting a grey market premium of Rs 15–17, indicating a likely listing in the Rs 85–88 range. He said the company’s Rs 669-crore order book suggests strong future earnings potential, but added that its modest scale and leverage of 1.4 times have prompted mixed views from brokerages.

"While some smaller brokerages gave ‘subscribe’ ratings, larger firms maintained a neutral stance. Most of the IPO proceeds are aimed at meeting working capital needs and equipment purchases," he said, adding that while the response shows confidence in the company’s infra-led growth story, investors should remain mindful of execution and funding-related risks.

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