Globe Civil Projects IPO Sees Strong Day 1 Demand, Subscribed 6.16 Times

New Delhi, June 24, 2025: The Initial Public Offering (IPO) of Globe Civil Projects Limited opened to an enthusiastic response on its first day of bidding, achieving an overall subscription of 6.16 times by 4:00 PM. This ₹119 crore issue, which is entirely a fresh equity offer, witnessed robust participation across all investor categories, indicating a healthy market appetite for infrastructure-focused players in the Engineering, Procurement, and Construction (EPC) sector.

Strong Institutional Backing Pushes QIB Quota to 8x Subscription

The Qualified Institutional Buyers (QIBs) category led the subscription momentum, with a remarkable 8.06 times subscription. QIBs bid for 2.70 crore equity shares against an offer size of 33.52 lakh shares. The majority of these bids came under the ‘Others’ sub-category, reflecting strong engagement from domestic institutions, including alternative investment funds and registered portfolio managers.

While no bids were recorded yet from Mutual Funds or Foreign Institutional Investors (FIIs) on the first day, this is a common trend as QIBs often place their significant bids on the final day, often after anchor investor allotments provide additional cues.

NII Segment Records Over 6x Demand, High Net Worth Individuals Show Interest

The Non-Institutional Investor (NII) category also witnessed impressive demand, with 1.52 crore shares bid against an allocation of 25.14 lakh shares, leading to a subscription of 6.04 times. Within this category, the sub-segment of individuals applying for more than ₹10 lakh saw 97.36 lakh shares bid, translating to 5.81 times subscription.

Notably, the demand was largely driven by affluent individuals and active traders, with individual investors contributing 92.98 lakh shares, and others — possibly proprietary desk bids — accounting for another 4.38 lakh shares.

Retail Investors Show Resilience with 5.10x Subscription

Retail participation remained robust, with the Retail Individual Investors (RII) segment receiving bids for 2.99 crore shares against a reserved quota of 58.66 lakh shares, translating to a 5.10 times subscription. A significant portion of these bids (2.57 crore shares) were at the cut-off price, signalling strong investor confidence in the issue’s valuation and future prospects, even in the absence of official grey market premium (GMP) data. (Note: Unofficial GMP reports suggested a premium of around ₹14-₹16 per share on Day 1).

Cumulative Subscription Data: 7.23 Crore Shares Bid on Day 1

As per the consolidated data available at 15:57 IST:

• Total shares offered: 1,17,32,392
• Total bids received: 7,23,08,645
• Total bids at cut-off price: 2,58,02,557
• Price-wise bidding (₹67 to ₹71) showed nearly stable demand, with only marginal drop-offs from 7.23 crore shares at ₹67 to 7.21 crore at ₹71, confirming a bullish bias toward the upper end.

The price band for the IPO has been fixed at ₹67 to ₹71 per share, with a minimum lot size of 200 shares. The issue will remain open for bidding till June 26, 2025, with allotment and listing expected in early July.

Promoter Holding and Use of Funds

Globe Civil Projects IPO is entirely a fresh offer of 1.68 crore equity shares, with no Offer for Sale (OFS) component. Promoters Ved Prakash Khurana, Nipun Khurana, and Vipul Khurana currently hold an 88.14% stake pre-issue, which will dilute to approximately 63.41% post-issue.

The proceeds from the IPO are earmarked for:

• ₹75 crore towards working capital requirements.
• ₹14.06 crore for the procurement of new construction equipment and machinery.
• The balance for general corporate purposes.

Lead Managers and Registrar

• Book Running Lead Manager (BRLM): Mefcom Capital Markets Limited
• Registrar to the Issue: KFin Technologies Limited

About the Company

Globe Civil Projects Limited, incorporated in 2002, is a New Delhi-based integrated EPC company operating in the infrastructure sector. Its portfolio includes transport and logistics projects (roads, bridges, railways, and airport terminals), Social and Commercial projects (schools, hospitals, sports infrastructure), and residential and non-infrastructure works. A significant portion of its business stems from government agencies, including the Central Public Works Department (CPWD).

For FY24, the company reported a revenue of ₹332.16 crore and a net profit of ₹15.38 crore, showcasing strong year-on-year growth (42.35% revenue growth and 217% PAT growth over FY23). As of August 2024, it boasts a healthy order book of ₹892.95 crore, providing strong revenue visibility for the coming years.

Outlook Ahead

With a robust Day 1 response, Globe Civil Projects appears well-positioned for a successful IPO. The company’s strong focus on public infrastructure projects, diversified experience, and improving financial metrics has resonated with investors. The final subscription figures over the remaining two days will indicate whether the issue can achieve even higher oversubscription levels, particularly if QIBs and mutual funds intensify their bidding towards the end.

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