Globe Civil Projects IPO to open on Tuesday; here's what GMP signals ahead of the issue launch

Globe Civil Projects IPO GMP ahead of opening: The initial public offering (IPO) of Globe Civil Projects IPO, which is set to open for bidding on Friday, June 24, is commanding a decent grey market premium (GMP) of ₹07 as of Thursday.

Based on the issue's upper price band of ₹71 and the current Globe Civil Projects IPO GMP, the estimated listing price for the company shares stands at ₹78 per share—a 10% premium over the issue price. The GMP reflects investors’ willingness to pay above the IPO price, indicating positive sentiment ahead of the launch.

Investors should note that the GMP is likely to fluctuate throughout the bidding period.

Globe Civil Projects IPO details

The IPO will open for bidding on Tuesday, June 24, and remain open until Thursday, June 26. The company aims to raise ₹119 crore, which is entirely a fresh issue of 1.68 crore shares. 

It proposes to use the IPO proceeds to fund working capital requirements, capital expenditure towards the purchase of construction equipment/machinery, and general corporate purposes.

The issue has reserved 50% of the shares for qualified institutional buyers (QIB), 15% for non-institutional institutional investors (NII), and 35% for retail investors.

Retail investors can participate in the issue with a minimum investment of ₹14,981 per lot, which consists of 211 shares. Investors can bid on up to 13 lots, which requires an investment of ₹194,753.

Allotment and listing details

Tentatively, Globe Civil Projects IPO basis of allotment of shares will be finalized on Friday, June 27, and the company will initiate refunds on Monday, June 30, while the shares will be credited to the demat account of allottees on the same day following the refund. 

Globe Civil Projects share price is likely to be listed on BSE and NSE on Tuesday, July 01.

About Globe Civil Projects

Globe Civil Projects, incorporated in 2002, is an integrated engineering, procurement, and construction (EPC) company headquartered in New Delhi. The company is involved in the execution and construction of infrastructure projects comprising transport and logistics projects, social and commercial projects, and non-infrastructure projects comprising commercial offices and housing.

The revenue, EBITDA, and PAT have grown at a CAGR of 7.8%, 39.6%, and 72.0% to ₹332 crore, ₹45 crore, and ₹15 crore, respectively, during FY22-FY24. 

The current order book position (2.0x of 9MFY25 annualized revenue) provides healthy revenue visibility for the near term. However, D/E at 1.4x as of December 2024 is relatively higher than its peers, as per analysts.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.