Globe Civil Projects has launched its ₹264 crore initial public offering and early market signals suggest strong investor interest. The grey market premium (GMP) is currently around 20 to 21 percent over the issue price, indicating the potential for a robust listing if momentum continues. Although GMPs are unofficial and unregulated, they often reflect market sentiment ahead of listing.
On the first day of the IPO, subscriptions were strong, particularly among institutional and high-net-worth investors. This early response is aligned with the positive buzz in the grey market. The issue is entirely a fresh offer with no offer for sale, which means the proceeds will directly support the company’s operations and expansion. About ₹75 crore will be used to meet working capital needs and ₹14 crore is allocated for capital expenditure. The rest will go toward general corporate purposes.
Globe Civil Projects focuses on engineering, procurement and construction contracts with expertise in roads, logistics parks, storm water drains, and other public infrastructure. Its financials have shown solid growth. In FY24, the company reported ₹332 crore in revenue, a 42 percent increase year on year, and a profit of ₹15.4 crore, up over 200 percent from the previous year. The current order book stands at ₹893 crore, giving it strong revenue visibility.
The promoters will continue to hold approximately 88 percent of the company post-issue, while the rest will be with institutional and retail investors. One of the key investors is Chanakya Opportunity Fund I, which supports the company’s credibility in the market. Still, as with any EPC player, operational risks such as cost overruns and execution delays remain relevant.
For investors considering the IPO, the company’s growth trajectory and order book offer fundamental support. The early subscription figures and GMP suggest positive short-term sentiment. However, investors should also consider valuation levels, broader market conditions and sector-specific risks before making a final decision.
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