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Globe Civil Projects IPO: Check out 10 key things to know from RHP before investing
Globe Civil Projects IPO: The subscription period for the Globe Civil Projects IPO is set to begin on Tuesday, June 24, and will conclude on Thursday, June 26. The allocation for anchor investors in the Globe Civil Projects IPO is expected to occur on Monday, June 23.
Globe Civil Projects IPO price band has been set between ₹ 67 and ₹ 71 per equity share, with a face value of ₹ 10. The lot size for the Globe Civil Projects IPO stands at 211 equity shares, and additional shares can be bought in multiples of 211.
The Globe Civil Projects IPO has allocated a maximum of 50% of the public issue shares for qualified institutional buyers (QIB), a minimum of 15% for non-institutional investors (NII), and at least 35% of the offering is earmarked for retail investors.
The basis for the allotment of shares for the Globe Civil Projects IPO will be determined on Friday, June 27, and the company will process refunds starting Monday, June 30, while shares will be credited to the demat accounts of investors on that same day, following the refunds. The shares of Globe Civil Projects are anticipated to be listed on the BSE and NSE on Tuesday, July 1.
Here are 10 key things from the Red Herring Prospectus (RHP) that investors might want to know before subscribing to the issue.
The company's promoters include Ved Prakash Khurana, Nipun Khurana, and Vipul Khurana. Ved Prakash Khurana owns 5,773,659 equity shares, while Nipun Khurana and Vipul Khurana each possess 16,045,705 equity shares. These amounts represent 13.44%, 37.35%, and 37.35% of the company's pre-issue issued, subscribed, and paid-up equity share capital, respectively.
The company's publicly traded competitors include B L Kashyap and Sons Ltd (which has a P/E of 29.57), Ceigall India Ltd (with a P/E of 12.88), PSP Projects Ltd (showing a P/E of 20.38), Capacit'e Infraprojects Ltd (reporting a P/E of 20.56), and Ahluwalia Contracts (India) Ltd (featuring a P/E of 16.41).
The company is an integrated engineering, procurement, and construction (EPC) firm based in New Delhi. The organisation specialises in executing and constructing infrastructure projects that include Transport and Logistics, Social and Commercial projects, as well as Non-Infrastructure ventures such as commercial office buildings and housing developments.
Although the company has traditionally excelled in constructing educational institution facilities and railway infrastructure, it has expanded its scope to include specialised infrastructure and non-infrastructure projects, such as railway bridges, airport terminals, elevated railway terminals, and hospitals.
The company has successfully completed projects in 11 Indian states, including Uttar Pradesh, Haryana, Delhi, Maharashtra, Andhra Pradesh, Karnataka, Gujarat, Chhattisgarh, Rajasthan, Uttarakhand, and Himachal Pradesh.
Globe Civil Projects Limited has finalised a total of 37 projects. At present, the company is engaged in 12 ongoing projects, which include five social and commercial initiatives.
As of August 31, 2024, the company's order book totals ₹ 8,929.45 million, which encompasses 14 projects: 6 Infrastructure - Social and Commercial projects; 3 Infrastructure - Transport and Logistics projects; 4 Non-Infrastructure - Housing projects; and 1 Non-Infrastructure - Commercial Office project.
The company announced a profit of ₹ 15.4 crore for the fiscal year that concluded in March 2024, representing a year-on-year growth of 217 percent, while its revenue increased by 42.3 percent to reach ₹ 332.2 crore. For the nine-month period ending in December 2024, the profit was ₹ 17.8 crore, with revenues amounting to ₹ 254.7 crore.
The firm comprises a group company that includes Earthcon Systems India Private Limited.
The firm is based in New Delhi and has steadily grown their footprint across eleven (11) states in India. At present, we are operating in the states of Uttar Pradesh, Haryana, Delhi, Maharashtra, Andhra Pradesh, Karnataka, Gujarat, Chhattisgarh, Rajasthan, Uttarakhand, and Himachal Pradesh.
As of August 31, 2024, Globe Civil Projects employs a permanent staff of 112 individuals.
Some of the key risks are as follows; As of March 31, 2025, the consolidated order book of the company stood at ₹ 6,691.02 million. The projects captured in their order book could face delays, modifications, or cancellations due to factors outside their control, or clients might not fulfill their payment obligations, which could significantly impact their cash flow, revenues, or profits. Delays or defaults in the payment of statutory dues could lead to penalties, consequently affecting the financial condition of the company.
Half of the equity shares allocated to each anchor investor in the anchor investors portion will be subject to a lock-in period of ninety (90) days starting from the date of allotment, while the other half will be locked-in for thirty (30) days from the date of allotment.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
