Globe Civil Projects IPO

About Globe Civil Projects IPO

Globe Civil Projects Limited IPO is an IPO of 1.68 crore shares. It consists of a fresh issue of up to 1.68 crore equity shares. The shares will be allotted on June 27, 2025. The credit of shares to the demat account will take place on June 30, 2025 and the initiation of refunds will take place on June 30, 2025.

Objective of Globe Civil Projects IPO

• Funding working capital requirements of the company.
• Funding capital expenditure requirements towards the purchase of equipment/machineries.
• General corporate purposes.

Industry Outlook

The construction sector is a key component of the Indian economy with linkages across more than 250+ sub sectors. Construction, the second largest economic activity in India (after agriculture) contributes around ~9.1% to the national GDP. Further, India is poised to become the third-largest construction market in the next 2-3 years on the back of stable economic growth as the real estate sector has emerged to be a critical engine in the country’s growth story. The construction sector, along with the output generated from real estate services and ownership of dwellings, contributes nearly 14.3% to the economy’s total output (at constant prices) in FY 2023.

In December 2019, an investment worth INR 102 trillion was announced by the government on infrastructure projects over the next five years under the National Infrastructure Pipeline (NIP). The task force on NIP increased this amount to INR.111 trillion in May 2020 from its initial projection of INR102 trillion which translate in per year spending of around INR 22 trillion. The National Infrastructure Pipeline aims to improve the ease of living for its citizens. National Infrastructure Pipeline will include projects in various sectors such as housing, safe drinking water, access to clean and affordable energy, world-class educational institutes, healthcare for all, modern railway stations, airports, bus terminals, metro and railway transportation, logistics and warehousing, irrigation projects, etc.

Company Information

Globe Civil Projects Limited is an integrated engineering, procurement and construction (EPC) company headquartered in New Delhi. They execute and construct infrastructure projects comprising transport and logistics projects, social and commercial projects and non-infrastructure projects comprising commercial offices and housing.

While their primary focus and strength had been deeply rooted in the construction of education institution buildings and railway infrastructure, they have diversified into undertaking specialised infrastructure and non-infrastructure projects, such as railway bridges, airport terminals, elevated railway terminals and railway bridges, and hospitals. Additionally, they also undertake trading of goods, particularly TMT steel.

Risks of Globe Civil Projects IPO

For the Fiscal 2024, Fiscal 2023 and Fiscal 2022, their revenue from operations from projects undertaken under JVs contributed 33.36%, 28.98%, and 35.15%, respectively, amounting to ₹97.844 crores, ₹57.536 million, and ₹89.150 million, respectively. The failure of a JV counterparty or consortium member to perform its obligations could impose additional financial and performance obligations resulting in reduced profits or, in some cases, significant losses, and it may adversely affect their business, results of operations and financial condition.

• Their business and profitability are substantially dependent on the availability and cost of their raw materials, and they are dependent on third-party suppliers for meeting their raw material requirements. Any disruption to the timely and adequate supply, or volatility in the prices of raw materials may adversely impact their business, results of operations and financial condition.

• Natural calamities, climate change and health epidemics and pandemics in India could adversely affect their business, results of operations and financial condition. In addition, hostilities, terrorist attacks, civil unrest and other acts of violence could adversely affect their business, results of operations and financial condition.

• Financial instability in other countries may cause increased volatility in Indian financial markets.

Anchor Investor Information

The Anchor Investor Bidding Date shall be one Working Day prior to the Bid/Issue Opening Date.

IPO Registrar and Book Running Lead Managers

Book running lead managers:

Mefcom Capital Markets Limited

Registrar for the IPO is KFin Technologies Limited

Business Model

The company earns its revenue through the following sources:

• Construction of infrastructure projects comprising transport and logistics projects, social and commercial projects, and non-infrastructure projects comprising commercial offices and housing.
  
• Construction of non-infrastructure projects, such as railway bridges, airport terminals, elevated railway terminals and railway bridges and hospitals.
  
• Additionally, they also undertake trading of goods, particularly TMT steel.
  

Company Growth Trajectory

Their revenue from operations from construction project receipts has increased from ₹2,53.617 crores in fiscal 2022 to ₹2,93.267 crores in fiscal 2024 at a CAGR of 7.53%. Their revenue from trading TMT steel has increased from ₹32.092 crores in fiscal 2022 to ₹38.895 crores in fiscal 2024 at a CAGR of 10.09%.

Their total revenue from operations increased from ₹2,85.709 crores in fiscal 2022 to ₹3,32.162 crores in fiscal 2024, representing a CAGR of 7.82%. Their profit before tax increased from ₹7.019 crores in fiscal 2022 to ₹20.987 crores in fiscal 2024, representing a CAGR of 72.92%.

Their revenue is derived from two business segments, namely construction project receipts and trading of goods. For fiscal 2024, approximately ₹2,93.297 crores was derived from their construction project receipts, representing 88.29% of their revenue from operations, while approximately ₹38.895 crores was derived from their trading business, representing 11.7% of their revenue from operations.

Company Market Position

As of 3rd Oct, 2024, the company has successfully completed thirty-seven (37) projects in the last two decades. The company is headquartered in New Delhi,and gradually expanded their presence in eleven (11)different states of India. Currently, it is present in the states of Uttar Pradesh, Haryana, Delhi, Maharashtra, Andra Pradesh, Karnataka, Gujarat, Chhattisgarh, Rajasthan, Uttarakhand, and Himachal Pradesh.

The company is also registered Class-1 Super contractor with the Central Public Work Department (CPWD), Government of India to tender for any work up to ₹6,50 crores.

How To Check Allotment Status of Globe Civil Projects IPO?

You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of the registrar KFin Technologies Limited. To check the status on the BSE website:

• Visit the BSE website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt (Equity in this case)
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is Globe Civil Projects Limited
• Enter your application number or PAN number
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

Follow these steps to know the allotment status on the registrar’s website:

• Visit the KFin Technologies Limited website
• Choose “Public Issues” from the “Investor Services” drop-down
• Select Globe Civil Projects Limited from the drop-down
• Enter your PAN number or Application number
• Click on “Submit” to know the allotment status

How to Apply for Globe Civil Projects IPO?

To apply for this IPO:

• Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section
• Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for
• Step 3: Enter UPI ID: After entering your UPI ID, click submit. This will place your bid with the exchange
• Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds
• Step 5: Approve Request: Your funds will be blocked once you approve the mandate request on your UPI