IPO closes on 26 Jun'25
Globe Civil Projects Ltd
Minimum Investment
₹ 14,981 / 211 shares
Grey market premium
₹ 15 (21% premium)
Subscribe for listing gains
- Globe Civil Projects Ltd (GCPL) is a growing regional EPC player, with a strong execution track record, healthy margins and improving profitability.
- In terms of valuation, the IPO is priced at a P/E ratio of 20x based on FY24 earnings. The grey market premium (GMP) suggests a positive listing on the exchanges.
- While the IPO is fairly valued and supported by a decent order book, the company’s relatively small scale of operations could impact its financial performance if any project experiences delays.
- GCPL is still in a growth phase and its debt levels and other risk factors (outlined below) warrant caution. Given these factors, investors with a higher risk tolerance may consider subscribing for potential listing gains.
About the company
Founded in
22 May'02
Managing director
Nipun Khurana, Vipul Khurana
- GCPL is an integrated Engineering, Procurement and Construction (EPC) company based in New Delhi, specializing in the execution and construction of infrastructure projects. Its portfolio includes transport and logistics, social and commercial projects, as well as non-infrastructure projects like commercial offices and housing.
- Besides a strong foundation in constructing educational institutions and railway infrastructure, GCPL has diversified into specialized projects such as railway bridges, airport terminals, elevated railway terminals and hospitals. The company also engages in the trading of goods, particularly TMT steel.
STRENGTHS
- Impressive Financial Growth: From FY22 to FY24, GCPL delivered a CAGR of 8% in total income, 40% in EBITDA and 72% in net profit.
- Healthy Return Metrics: GCPL demonstrates strong operational efficiency with impressive return metrics— Return on Equity (RoE) at 22% and Return on Capital Employed (RoCE) at 23% in FY24.
- Expanding Profit Margins: Profitability has steadily improved, with EBITDA margins increasing from 8.02% in FY22 to 13.44% in FY24 and net profit margins rising from 1.81% to 4.59%, reaching 6.93% by December 2024.
- Solid Order Book: As of March 31, 2025, GCPL’s order book was ~Rs 669 crore, comprising 13 ongoing projects for a diverse set of corporate, government and other customers across various segments.
RISK FACTORS
- Client Concentration: As of December 31, 2024, approximately 98% of GCPL’s revenue is derived from its top 10 customers. A decline in business from these key customers could adversely affect its operations and results.
- Competitive Tendering Risk: GCPL relies heavily on tenders won through a competitive bidding process. Intense competition could adversely affect its profitability and bid win ratio. For 9MFY25, the company submitted successful bids for 11 projects but won only 1, resulting in a success rate of 9.09%, a sharp decline from 54.55% in FY24.
- Project Dependency: GCPL’s revenue is highly concentrated in a few major projects, with the top 1, 5 and 10 projects accounting for 26.65%, 74.01% and 98.33% of revenue from operations (construction project receipts) in 9MFY25, respectively. Any delays or slowdowns in the execution of these projects could negatively impact the company’s financial results.
- Cash Flow Concerns: GCPL has experienced negative cash flow from operations in both 9MFY25 and FY23. Continued negative cash flows could jeopardize business continuity and financial stability.
- Legal Risks: GCPL, its promoters and certain directors are currently facing legal cases amounting to approximately Rs 151 crore. Any unfavourable outcomes in these lawsuits could negatively impact the company's reputation and business prospects.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 119 crore
Fresh Issue
₹ 119 crore
OFS
₹ -
Price range
₹ 67 - 71
Lot size
211 shares
Issue Objective
The net proceeds from the fresh issue will be utilized for:
- Funding the working capital requirements of the company;
- Purchasing construction equipment/ machineries; and
- General corporate purposes.
Dates
Bidding open
24 Jun'25
Bidding close
26 Jun'25
Allotment date
27 Jun'25
Refund date
30 Jun'25
Listing
1 Jul'25
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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