Key IPO Details

The price band and lot size provide investors with a range to estimate their investment without revealing specific monetary amounts.

Business Overview

Established in 2002, Globe Civil Projects is a New Delhi-based engineering, procurement, and construction (EPC) company specializing in infrastructure development across India. The company has executed projects in 11 states, focusing on sectors such as transport and logistics, social and commercial infrastructure, and non-infrastructure projects like commercial offices and housing.

Notable projects include the construction of indoor stadiums for the Commonwealth Games 2010, ward blocks for G.T.B Hospital in New Delhi, and facilities for the Indian Institute of Management, Noida.

As of FY2024, Globe Civil Projects reported revenues of ₹334.81 crore and a net profit of ₹15.38 crore, reflecting a significant improvement from the previous fiscal year.

Industry Context & Investment Thesis

Globe Civil Projects’ operations align with broader sustainability and circular economy themes. The company’s focus on infrastructure projects contributes to long-term growth and development while addressing environmental and social concerns.

By emphasizing sustainable practices and efficient resource management, Globe Civil Projects is positioned to thrive in an evolving market that values eco-friendly and socially responsible initiatives.

Investors may consider the company’s issue size and usage of funds to support projects that drive positive environmental and social outcomes, potentially attracting sustainability-focused investors.

IPO Schedule & Key Dates

Timelines for the IPO process are crucial for planning UPI transactions, tracking allotment status, and anticipating the listing date.

Investors are advised to monitor mandates and allotment status in accordance with the specified dates.

How to Apply for Globe Civil Projects Limited IPO

To apply for the Globe Civil Projects Limited IPO, investors can follow these steps: Access a UPI-enabled broker app or apply through ASBA via their bank.

• Ensure you have a UPI ID linked to your bank account.
• Submit your bid during the IPO window.
• Monitor your UPI mandate and bank for updates on allotment and refunds.

Key Strengths

• Over two decades of experience in executing diverse infrastructure projects across multiple states.
• Strong financial growth with a 60% increase in revenue and a 185% rise in net profit in FY2024.
• Robust order book of approximately ₹941 crore as of August 2023, providing revenue visibility for the next three years.
• Established relationships with reputed clients, including government agencies and public sector undertakings.
• Registered as a Class-I contractor with the Central Public Works Department (CPWD), enabling participation in large-scale government projects.

Globe Civil Projects’ strengths indicate stability and growth potential, appealing to investors seeking long-term returns and those interested in sustainable infrastructure development.

The company’s strong financial performance and established client base may attract investors with a high risk tolerance and a focus on industry expertise.

Key Risks

• High dependency on government contracts, making revenues susceptible to policy and budgetary changes.
• Working capital-intensive operations may affect liquidity during project execution.
• Exposure to regulatory and environmental compliance risks in infrastructure projects.
• Potential delays in project execution due to unforeseen site conditions or approvals.
• Concentration risk if a significant portion of revenue is derived from a few large clients.

Globe Civil Projects faces risks common in the industry, including regulatory uncertainties and operational challenges. Investors should consider these factors while evaluating their risk tolerance and investment horizon.

Volatility in government policies and project delays could impact short-term returns, making this IPO more suitable for investors with a long-term perspective and diversified portfolios.

Who Should Consider This IPO?

Investors with a long-term investment horizon and an interest in infrastructure development may find Globe Civil Projects Limited IPO appealing. The company’s focus on sustainability and established track record could attract those seeking exposure to the infrastructure sector.

Individuals with a moderate to high risk tolerance and a strategic approach to portfolio diversification may also consider Globe Civil Projects for potential growth opportunities.

Frequently Asked Questions