By 1:09 PM, the IPO had attracted bids for 13,05,68,488 shares. The highest demand came from non-institutional investors (NIIs), who subscribed 13.95 times their allotted quota. Retail investors followed closely with 11.67 times subscription, while qualified institutional buyers (QIBs) bid 8.07 times.
In the grey market, shares of Globe Civil Projects were quoting a premium of Rs 12, indicating a potential listing gain of around 17% over the upper end of the price band.
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About Globe Civil Projects IPO
The company proposes to utilise the net proceeds for three main purposes. Firstly, a portion will be allocated to fund its working capital requirements. Secondly, the proceeds will be used for capital expenditure related to the purchase of construction equipment and machinery. Lastly, the remaining funds will be directed towards general corporate purposes.
Globe Civil Projects IPO key dates
The issue opened on June 24 and will close on June 26. The allotment of shares is expected on June 27, while the listing on stock exchanges is likely to take place on July 1.
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Globe Civil Projects IPO price band
The price band for the issue has been set in the range of Rs 67 to Rs 71 per share.
Book running lead manager
The lead manager for the issue is Mefcom Capital Markets Limited, while the registrar is KFin Technologies Limited.
About Globe Civil Projects
Globe Civil Projects is an integrated engineering, procurement and construction (“EPC”) company headquartered in New Delhi. It has undertaken projects in eleven (11) states of India, namely, Uttar Pradesh, Haryana, Delhi, Maharashtra, Andhra Pradesh, Karnataka, Gujarat, Chhattisgarh, Rajasthan, Uttarakhand, and Himachal Pradesh.
The company is into the execution and construction of infrastructure projects comprising Transport and Logistics projects, Social and Commercial projects and non-infrastructure projects comprising commercial offices and housing.
While its primary focus and strength had been deeply rooted in the construction of educational institution buildings and railway infrastructure, it has diversified in undertaking specialised infrastructure and non-infrastructure projects, such as railway bridges, airport terminals, elevated railway terminals and railway bridges and hospitals.
Should you subscribe to Globe Civil Projects IPO?
“If marked a de-growth in top and bottom lines for FY23. Based on its recent financial data, the issue appears fully priced,” said Bajaj Broking in its note.
The issue is priced at a P/BV of 3.06 based on its NAV of Rs. 23.24 as of December 31, 2024, and at a P/BV of 1.94 based on its post-IPO NAV of Rs. 36.64 per share (at the upper cap).
“If we attribute FY25 annualised earnings to its post-IPO fully diluted paid-up equity capital, then the asking price is at a P/E of 17.88. Based on FY24 earnings, the P/E stands at 27.52. Thus, the issue is fully priced,” the note added.
With this view, Bajaj Broking has a ‘subscribe for long term’ rating for the issue.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)