Globe Civil Projects IPO Day 2 Review: GMP, Subscription, Business Model, Promoters' Journey, and Expert Opinion

Globe Civil Projects IPO sees strong subscription on Day 2 with 13.18x bids. Read a full review including GMP, company background, promoters’ profile, business model, IPO objective, and whether to apply or not.

Credit-Image From Company Web Site

Introduction

India’s infrastructure story is once again drawing investor attention with the Globe Civil Projects IPO, which opened for subscription on 24 June 2025 and will close on 26 June 2025. The company, a Delhi-based EPC (Engineering, Procurement, and Construction) player, has witnessed enthusiastic investor interest in its public issue. By Day 2, the IPO was already subscribed over 13 times, with the retail segment crossing 14 times, highlighting a strong appetite for infra plays in India’s growing urban ecosystem.

But the big question remains—should you apply or stay cautious? In this detailed humanized blog, we explore the IPO’s key details, company background, promoters’ journey, financials, business model, GMP, and expert opinions to help you make a well-informed decision.

Globe Civil Projects IPO at a Glance

Here are the key facts about the IPO:

IPO Opening Date: 24 June 2025
IPO Closing Date: 26 June 2025
Price Band: ₹67 to ₹71 per equity share
Lot Size: 211 shares
Issue Size: ₹119 crore (Fresh Issue)
GMP (Grey Market Premium): ₹15 as on Day 2
Registrar: Kfin Technologies Ltd
Lead Manager: Mefcom Capital Market
Likely Allotment Date: 27 June 2025
Expected Listing Date: 1 July 2025 on BSE and NSE

Subscription Status on Day 2

As of 3:03 PM on 25 June 2025:

Total Subscription: 13.18 times
Retail Investors: 14.28 times
Non-Institutional Investors (NII): 17.38 times
Qualified Institutional Buyers (QIB): 8.11 times

This robust demand reflects investors’ growing confidence in smaller infrastructure companies operating in niche segments of the urban infrastructure ecosystem.

Promoters’ Journey: From Regional Roots to Public Markets

Globe Civil Projects Ltd. was incorporated in 2002 by a group of civil engineers and infrastructure professionals who had vast experience in public sector contracts. The promoters hail primarily from North India, especially from engineering and municipal project backgrounds.

Mr. Pankaj Goyal, the Managing Director and one of the key promoters, started his career as a project engineer with municipal corporations in Delhi. Over the years, he envisioned building a focused EPC company targeting urban development needs, such as bridges, roads, flyovers, and sanitation infrastructure.

The company’s strength lies in ground-level execution and managing government contracts efficiently, something Mr. Goyal attributes to his years of experience dealing with government bodies and understanding their procurement systems.

With over 55 projects completed since inception and a current order book exceeding ₹900 crore, the promoters have built Globe Civil into a dependable regional infra partner, now stepping onto the national stage with its IPO.

Business Model: EPC Player with Urban Focus

Globe Civil Projects operates as an EPC contractor primarily focused on:

Roads and highways
Flyovers and bridges
Sewerage and drainage systems
Civic and municipal infrastructure

Its business model revolves around:

Bidding and Execution of Government Contracts: The company specializes in winning tenders from urban local bodies and municipal corporations.
End-to-End Execution: From design to procurement and civil execution, it handles all phases internally.
Asset-Light Strategy: It outsources non-core components to stay agile, focusing resources on project management and on-ground supervision.
Focus on Execution Margin: The company has successfully maintained an EBITDA margin of over 33 percent in FY24, highlighting its operational efficiency.

Financial Highlights

Revenue CAGR (3 years): ~8 percent
EBITDA Margin (FY24): 33.2 percent
PAT Margin: 4.59 percent
ROE (Return on Equity): 21.95 percent
ROCE (Return on Capital Employed): ~23 percent
Debt-Equity Ratio: 1.60
P/B Ratio (March 2025): 3.92

These numbers show a financially sound business with healthy margins and strong return ratios, although the leverage (debt level) remains a concern.

Use of IPO Funds

The company plans to use the ₹119 crore raised from the IPO in the following manner:

Working Capital Requirements: With expanding orders, especially in projects requiring upfront capital for materials and labor, a portion of the proceeds will be used to strengthen liquidity.
Debt Reduction: Reducing the debt burden will help bring down interest costs and improve profitability.
General Corporate Purposes: This includes improving internal systems, bidding for larger projects, and enhancing technical capabilities.

The IPO aims to position the company for larger and more profitable contracts in the future, apart from strengthening the Working Capital requirement, and also the Balance Sheet.

Expert Opinions: Apply or Not?

Gaurav Goel, Founder & Director at Fynocrat Technologies, shares a balanced view:

“Globe Civil Projects Ltd. is a promising regional EPC player with a solid execution record, healthy margins, and improving profitability. While debt remains a concern, and the company is still scaling up, the IPO is fairly valued and backed by a decent order book. Given its high RoE and project pipeline, investors with a long-term view and appetite for small-cap infra exposure should consider applying.”

Meanwhile, a report by Ventura Securities strongly recommends applying, citing:

Solid past execution of 55+ projects
Strong EBITDA margin of 33.2 percent
₹900 crore order book
Expansion potential in India’s urban infrastructure push
Use of IPO funds to address working capital and debt

However, short-term investors are advised to manage expectations due to the company’s smaller size and sector-related execution risks.

Conclusion: Should You Apply?

For long-term investors: Yes.
With high subscription demand, healthy financials, and a solid track record in civic infrastructure, Globe Civil Projects' IPO looks attractive for those seeking small-cap infra exposure. The company’s focused business model, experienced promoters, and efficient operations offer long-term value.

For short-term investors: Cautious optimism.
The IPO has a ₹15 grey market premium, and demand has been strong. However, listing gains might be modest due to the company’s size, sector volatility, and debt levels.

Final Verdict:

Apply with a long-term growth perspective. Globe Civil Projects is well-positioned to benefit from India’s urban transformation and infrastructure development, especially at the municipal level.

Author’s Note

This blog provides a clear, unbiased, and accessible overview of the Globe Civil Projects IPO. As an independent financial educator, my aim is to break down complex market information, back insights with expert perspectives, and create content that is approachable for all investors, from novices to seasoned market players.

While the IPO shows promise, especially for long-term investors, I encourage readers to conduct their own due diligence, assess their personal risk appetite, and consult with a SEBI-registered financial advisor before making any investment decision.

For more IPO insights, market analysis, and business stories, feel free to follow this blog. Your feedback, suggestions, and questions are always welcome.

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