Globe Civil Projects IPO: Key Dates, Price Band, and Issue Structure Explained

Market Performance

The Globe Civil Projects IPO is set to open for subscription from Tuesday, June 24, to Thursday, June 26. The IPO has gained attention due to its structured pricing and precise investor segmentation.

• IPO Price Band: ₹67 to ₹71 per equity share
• Face Value: ₹10 per equity share
• Lot Size: 211 equity shares and in multiples thereof
• Total Issue Size: ₹119 Crore

The anchor investor allocation is scheduled for Monday, June 23, with the basis of allotment to be finalized on Friday, June 27.

Following the allotment, refunds are expected to be initiated by Monday, June 30, and shares are slated to be credited to demat accounts the same day. The stock is expected to be listed on BSE and NSE on Tuesday, July 1.

Main News: Globe Civil Projects IPO Structure

The ₹119 Crore IPO is entirely a fresh issue of 1,67,60,560 equity shares, with no offer for sale (OFS) component involved.

Investor Quota Allocation:

• QIBs (Qualified Institutional Buyers): Up to 50%
• Non-Institutional Investors (NII): At least 15%
• Retail Investors: At least 35%

The price-to-earnings (P/E) ratio for FY2024 is calculated as:

• 18.72 times at the lower price band
• 19.83 times at the upper price band

This valuation is close to the industry average P/E of 18.96.

Company Details

Globe Civil Projects Limited, based in New Delhi, operates as a full-scale Engineering, Procurement, and Construction (EPC) firm. The company has an extensive footprint, having completed major infrastructure projects across 11 Indian states, including:

• Uttar Pradesh
• Delhi
• Maharashtra
• Haryana
• Andhra Pradesh
• Karnataka
• Gujarat
• Rajasthan
• Uttarakhand
• Himachal Pradesh
• Chhattisgarh

As of August 31, 2024, the company's order book stands strong at ₹8,929.45 million, comprising 14 ongoing projects.

Peer Comparison

According to its red herring prospectus, the company compares with the following listed peers:

• B L Kashyap and Sons Ltd: P/E – 29.57
• Ceigall India Ltd: P/E – 12.88
• PSP Projects Ltd: P/E – 20.38
• Capacity Infraprojects Ltd: P/E – 20.56
• Ahluwalia Contracts (India) Ltd: P/E – 16.41

Use of Proceeds

The net proceeds from the Globe Civil Projects IPO will be utilized for:

• Meeting working capital requirements
• Acquiring construction equipment and machinery
• Addressing general corporate purposes

Summary of the Article

Globe Civil Projects IPO will open on June 24 with a price band of ₹67 to ₹71 per share, comprising a fresh issue totaling ₹119 Crore. Backed by a strong project portfolio across multiple states and a substantial order book of ₹8,929.45 Crore, the company aims to utilize the IPO funds to strengthen its operations and upgrade its equipment.

With allotments set to conclude by June 27 and the listing likely on July 1, investors and market watchers will closely monitor this IPO's subscription trends.