IPO Details
Issue Open/Close Dates: June 24 – June 26, 2025.Price Band: ₹67–₹71 per share. Issue Size: ₹119.00 crore (fresh issue of 1.68 crore shares). Investor Allocation: 30% to anchor investors, 20% QIB (including a 5% for mutual funds), 15% NII, 35% Retail. Lead Manager: Mefcom Capital Markets; Registrar: KFin Technologies.
About the Company
Globe Civil Projects Ltd was incorporated in 2002 and is a New Delhi–based engineering, procurement and construction (EPC) firm. It specializes in infrastructure projects (transport & logistics, social and commercial infrastructure) and non-infrastructure projects (residential and commercial buildings). Over the past two decades it has completed 37 projects and, as of mid-2024, is executing 12 ongoing projects (including schools, hospitals, offices and railway bridges). The company operates in 11 states (Uttar Pradesh, Haryana, Delhi, Maharashtra, Andhra Pradesh, Karnataka, Gujarat, Chhattisgarh, Rajasthan, Uttarakhand, Himachal Pradesh), with roughly 60% of revenues from northern India. As of March 2025 the company had about 122 full-time employees. In recent years Globe Civil has broadened into specialized areas like railway bridges, elevated rail terminals, airports and modern institutional facilities.
Financials (Consolidated)
| Fiscal Year | FY2025 (9M ending Dec 2024) | FY2024 | FY2023 | FY2022 |
| Revenue (₹ Cr) | 254.7 | 332.2 | 233.3 | 285.7 |
| EBITDA (₹ Cr) | 39.3 | 44.7 | 20.8 | 22.9 |
| PAT (₹ Cr) | 17.8 | 15.4 | 4.9 | 5.2 |
| EBITDA Margin (%) | 15.4% | 13.4% | 8.9% | 8.0% |
| PAT Margin (%) | 7.0% | 4.6% | 2.1% | 1.8% |
*FY2025 figures are for the 9-month period ending December 31, 2024.
Anchors: Globe Civil Projects Limited IPO
About 30% of the issue is allocated to anchor investors. Globe Civil Projects Limited successfully raised ₹35.7 crore from six anchor investors ahead of its IPO, allocating 50,28,168 shares, which represents 30% of the total issue size, to these institutional participants. The top anchor investors include Chanakya Opportunities Fund, Steptrade Revolution Fund, Lords Multigrowth Fund, and Compact Structure Fund, along with two other institutional investors.
Key Highlights: Globe Civil Projects Limited IPO
Use of IPO Funds: Net proceeds will be deployed primarily to meet working capital needs (~₹75.0 crore) and to purchase construction equipment (~₹14.3 crore), with the balance for general corporate purposes.
Order Book: The company had a healthy order backlog of about ₹669.1 crore as of March 31, 2025, covering a mix of social, transport and building projects. This provides some near-term revenue visibility but growth in order book is not significant.
Margin Trends: Profitability has improved significantly. EBITDA margin expanded to ~13.4% in FY2024 from around 8–9% in FY2022–23, reflecting better execution and cost control. Net profit margin (PAT) also more than doubled year-on-year. Increase before the IPO sometimes is not a good sign.
Revenue Breakdown by Segment (FY2024): Globe Civil’s core business is civil construction projects, with 88% of revenue coming from project execution and the remaining 12% from the trading of construction materials (primarily TMT steel). In FY2024, nearly 30% of its project revenue was from contracts awarded by CPWD and similar government agencies, compared to ~57% in FY2023 and ~55% in FY2022. The company also undertakes joint‑venture infrastructure projects; JV revenues contributed ~33% of its project income in FY2024.
Geographic Revenue Split: Approximately 60% of its revenues are generated from northern India—mainly Delhi-NCR and Uttar Pradesh—while the remaining 40% is from projects across other states including Maharashtra, Karnataka, Gujarat, Rajasthan, and Himachal Pradesh.
Working Capital / Capacity: The business is working-capital intensive. Fund-based credit limits have been heavily utilized (~90%).
Working Capitals: It has high working capital requirements and a high debt-to-EBITDA.
Promoter holding: will drop significantly from 88% to 63%, post the IPO.
Peer Comparison
| Companies | Revenue | EBITDA Margins | PAT Margins | P/E | Mcap/Sales | D/E |
| Globe Civil (FY24) | 332.16 Cr. | 13.44% | 4.62% | 27.58 | 1.28 | 1.61 |
| Globe Civil (9m FY25) | 254.65 cr. | 15.43% | 7.00% | 17.8 | ||
| B L Kashyap (FY25) | 1,154 Cr. | 6% | 2.34% | 83.6 | 1.25 | 0.6 |
| Ceigall India (FY25) | 3,437 Cr. | 15% | 8.34% | 14.8 | 1.24 | 0.54 |
| PSP Projects (FY25) | 2,512 Cr. | 7.1% | 2.25% | 51.2 | 1.15 | 0.22 |
| Capacite Infra (FY25) | 2,350 Cr. | 16.2% | 8.67% | 13.2 | 1.14 | 0.25 |
| Ahluwalia Contracts (FY25) | 4,099 Cr. | 8.3% | 4.93% | 31.4 | 1.55 | 0.04 |
GMP: In the grey market, Globe Civil shares have been quoted a premium of about ₹15 per share (around 20%) as per SM posts.
Opinion: I many not subscribe to the Globe Civil Projects Limited IPO. When compared to listed peers in the construction and infrastructure sector, Globe Civil Projects appears relatively smaller in scale. No debt is planned to be retired from fresh issue proceeds, taking the net-debt to EBITDA figure around 2x.
This post is exploratory and educational purposes only.