The Indian infrastructure sector continues to witness remarkable growth, and Globe Civil Projects Limited emerges as an intriguing investment opportunity in the bustling EPC (Engineering, Procurement, and Construction) landscape. With a modest yet strategically sized initial public offering of ₹119 crores, this New Delhi-based civil construction company is positioning itself to capitalize on India’s infrastructure boom that shows no signs of slowing down. The minimum investment amount is 14,981 along with attractive price band of ₹67 to ₹71 per share
Founded in 2002, Globe Civil Projects has methodically built its reputation across 11 Indian states, successfully completing 37 projects while maintaining a robust order book worth ₹669.10 crores as of March 2025. The company’s impressive financial trajectory tells a compelling story of growth and operational efficiency, with revenue surging from ₹235.17 crores in FY23 to ₹334.81 crores in FY24, representing a remarkable 42.37% growth.
Even more striking is the company’s profit performance, which skyrocketed by 217.11% from ₹4.85 crores to ₹15.38 crores during the same period. As the IPO opens for subscription on June 24, 2025, investors are evaluating whether this mid-sized EPC contractor offers the right blend of growth potential, financial stability, and market positioning to justify investment in an increasingly competitive construction sector.
Table of Contents
Company Profile and Business Operations
Globe Civil Projects Limited represents a classic success story of focused execution and strategic growth in India’s dynamic construction sector. Established in 2002 with headquarters in New Delhi, the company has evolved from a regional player into a multi-state EPC contractor with operations spanning 11 Indian states, including major markets like Uttar Pradesh, Maharashtra, Delhi, and Gujarat. This geographic diversification provides natural hedge against regional economic variations while enabling the company to capitalize on infrastructure opportunities across different state governments and central agencies.
The company’s business model centers on executing civil construction projects across both infrastructure and non-infrastructure segments, serving diverse client requirements from government agencies to private developers. With 37 successfully completed projects in their portfolio, Globe Civil Projects has demonstrated consistent execution capabilities while building long-term relationships with clients who often award repeat contracts based on past performance and reliability.
Currently managing 12 ongoing projects with a combined order book value of ₹669.10 crores, the company has positioned itself strategically across multiple sectors including transport infrastructure, logistics facilities, housing developments, and commercial buildings. This diversified project portfolio includes 5 social and commercial infrastructure projects, 3 transport-related developments, 4 housing projects, and 1 office space development, ensuring revenue streams from various end-user segments.
The company operates with a lean organizational structure supported by 112 permanent employees, indicating efficient resource utilization and potentially lower fixed cost burden compared to larger competitors. This asset-light operational approach, combined with strategic joint venture partnerships, allows Globe Civil Projects to take on larger projects while maintaining financial flexibility and reducing capital intensity typically associated with infrastructure development.
IPO Structure and Investment Framework
The Globe Civil Projects IPO represents a pure fresh issue of 1.68 crore equity shares with a face value of ₹10 each, aggregating to a total offer size of ₹119 crores. Unlike many recent IPOs that include offer-for-sale components allowing existing shareholders to monetize holdings, this structure ensures that all raised capital directly benefits the company’s expansion and operational requirements.
The subscription window opens on June 24, 2025, and closes on June 26, 2025, providing investors with a three-day application period. Following standard IPO timelines, the shares are scheduled to list on both NSE and BSE after the subscription period concludes, providing liquidity across India’s major stock exchanges.
The grey market premium provides interesting insights into investor sentiment, with shares trading at ₹84 as of June 23, 2025, representing an 18.31% premium over the issue price cap of ₹71. This premium of ₹13 per share suggests positive market reception and potential listing gains, though grey market premiums can be volatile and don’t guarantee actual listing performance.
The IPO is managed by Mefcom Capital Markets Limited as the Book Running Lead Manager, while KFin Technologies Limited serves as the registrar handling investor applications and share allotment processes. These appointments ensure professional handling of the public offering with proper regulatory compliance and transparent allocation mechanisms.
Financial Performance and Growth Analysis
Globe Civil Projects Limited has demonstrated exceptional financial performance over recent years, showcasing the company’s ability to scale operations while dramatically improving profitability metrics. The revenue growth story reveals consistent expansion capabilities, with total income increasing from ₹235.17 crores in FY23 to ₹334.81 crores in FY24, representing impressive growth of 42.37% year-over-year.
Even more remarkable is the company’s profit transformation, with net profit surging by 217.11% from ₹4.85 crores in FY23 to ₹15.38 crores in FY24. This profit growth significantly outpacing revenue growth indicates improving operational efficiency, better project selection, enhanced cost management, or favorable market conditions that allowed for improved margins across their project portfolio.
The company’s compound annual growth rate metrics over the past two years paint an impressive picture of sustained expansion, with revenue growing at 8.05% CAGR while net profit achieved an outstanding 71.98% CAGR. These growth rates demonstrate the company’s ability to not only expand their business volume but also optimize profitability through operational improvements and strategic project execution.
Recent performance in the first nine months of FY25 continues this positive trajectory, with the company reporting revenue of ₹256.74 crores and net profit of ₹17.79 crores. This performance suggests that the company is maintaining its growth momentum while potentially achieving even better profitability ratios compared to the previous full year.
The earnings per share improved to ₹3.58 in FY24, while the company achieved a return on net worth of 19.80%, indicating efficient utilization of shareholder equity for generating profits. The net asset value per share stands at ₹18.10, providing baseline valuation metrics for potential investors evaluating the IPO pricing.
| Financial Metric | FY23 | FY24 | Growth Rate | 9M FY25 |
|---|---|---|---|---|
| Revenue (₹ Crores) | 235.17 | 334.81 | 42.37% | 256.74 |
| Net Profit (₹ Crores) | 4.85 | 15.38 | 217.11% | 17.79 |
| EPS (₹) | – | 3.58 | – | – |
| RoNW (%) | – | 19.80% | – | – |
| Revenue CAGR (2-year) | – | – | 8.05% | – |
| Profit CAGR (2-year) | – | – | 71.98% | – |
Strategic Positioning and Competitive Landscape
Globe Civil Projects operates in India’s highly competitive EPC sector, where the company has carved out a niche through focused execution and strategic market positioning. Compared to larger peers like PSP Projects Limited (₹2,530.01 crore revenue) and Ceigall India Limited (₹3,066.19 crore revenue), Globe Civil Projects represents a mid-sized player with potential for significant growth through market share expansion and operational scaling.
The competitive analysis reveals interesting dynamics, with Globe Civil Projects achieving a higher return on net worth (19.80%) compared to PSP Projects (13.49%) but lower than Ceigall India’s impressive 33.57%. This positioning suggests that while the company generates reasonable returns on equity, there remains room for improvement through operational optimization and strategic project selection.
The company’s net asset value per share of ₹18.10 appears conservative compared to peers like PSP Projects (₹222.50), Capacit’e Infraprojects Limited (₹179.30), and Ahluwalia Contracts (₹238.84), potentially indicating attractive valuation entry point for investors seeking exposure to the EPC sector.
Globe Civil Projects’ focus on government EPC projects provides steady demand visibility while leveraging India’s continued infrastructure spending commitments. Government contracts typically offer payment security and project scale, though they may involve longer payment cycles and regulatory complexities that require careful management.
The company’s asset-light business model with joint venture partnerships enables them to participate in larger projects without proportional capital investment, potentially improving return on capital metrics while managing financial risk exposure.
Fund Utilization Strategy and Growth Catalyst
The IPO proceeds of ₹119 crores will be strategically allocated across three primary areas designed to strengthen operational capabilities and support business expansion. The largest allocation of ₹75 crores is designated for working capital requirements, which represents a critical need for EPC companies that must fund project execution costs before receiving milestone payments from clients.
Working capital enhancement through IPO proceeds addresses one of the most significant challenges facing construction companies, where project cash flows often involve substantial upfront investments in materials, labor, and equipment before receiving payments. This capital infusion will enable Globe Civil Projects to take on larger projects, negotiate better terms with suppliers, and maintain operational flexibility during project execution phases.
The allocation of ₹14.26 crores for purchasing new construction equipment and machinery represents a strategic investment in operational capacity and efficiency. Modern construction equipment can improve project execution speed, reduce labor costs, enhance safety standards, and enable the company to bid for technically complex projects that require specialized machinery capabilities.
The remaining funds designated for general corporate purposes provide management with strategic flexibility to pursue unexpected opportunities, strengthen financial position, or address operational requirements as they emerge. This allocation ensures that the company maintains adequate financial buffer while pursuing growth initiatives.
Risk Assessment and Investment Considerations
Globe Civil Projects faces several inherent risks common to the EPC sector that potential investors must carefully evaluate. The company’s high dependence on government contracts, while providing demand stability, creates exposure to government payment delays, policy changes, and bureaucratic processes that can affect cash flow timing and project profitability.
Project execution risks represent ongoing challenges in the construction sector, where delays due to regulatory approvals, land acquisition issues, weather conditions, or technical complications can impact project timelines and profitability. The company’s operations across multiple states expose them to varying regulatory environments and local political dynamics that can influence project execution.
Rising raw material costs pose margin pressure risks, particularly for fixed-price contracts where the company cannot pass through cost increases to clients. Steel, cement, and other construction materials experience price volatility that can significantly impact project profitability, especially during inflationary periods.
The company’s limited geographical presence compared to larger national players may constrain growth opportunities and create dependence on specific regional markets. While this focus can provide operational advantages, it also limits diversification benefits and market opportunity access.
The fact that IPO proceeds are primarily allocated to working capital rather than capacity expansion or new growth assets suggests that the funding is more about operational support than transformational growth investments, which may limit near-term expansion potential.
Investment Strengths and Competitive Advantages
Globe Civil Projects possesses several compelling strengths that differentiate them within the competitive EPC landscape. The experienced promoter team of Ved Prakash Khurana, Nipun Khurana, and Vipul Khurana brings significant expertise in civil engineering and infrastructure development, providing strategic leadership that has enabled consistent company growth and successful project execution.
The robust order book worth ₹669.10 crores provides excellent revenue visibility and business predictability, representing approximately two years of revenue based on current execution rates. This order book offers investors confidence in near-term financial performance while demonstrating the company’s ability to secure and maintain client relationships.
The company’s focus on government EPC projects provides access to large-scale infrastructure development opportunities driven by India’s continued infrastructure spending commitments. Government clients typically offer payment security and project scale advantages, while the EPC model allows for better margin control compared to pure contracting arrangements.
The efficient asset-light operational model with strategic joint venture partnerships enables Globe Civil Projects to participate in larger projects without proportional capital investment. This approach potentially improves return on capital metrics while maintaining financial flexibility and reducing balance sheet intensity.
Moderate debt levels indicate financial discipline and provide capacity for strategic borrowing when growth opportunities arise. This conservative financial approach reduces interest burden while maintaining access to additional capital for expansion initiatives.
Market Outlook and Investment Recommendation
Globe Civil Projects IPO offers investors an opportunity to participate in India’s infrastructure growth story through a focused EPC contractor with demonstrated execution capabilities and strong financial momentum. The company’s impressive recent financial performance, robust order book, and strategic positioning provide solid foundation for potential investment returns.
The IPO appears reasonably priced considering the company’s growth trajectory, profitability improvements, and market positioning within the EPC sector. The grey market premium suggests positive investor sentiment, though actual listing performance will depend on broader market conditions and sector-specific factors at the time of listing.
For growth-oriented investors seeking exposure to India’s infrastructure development, the IPO provides access to a company positioned to benefit from continued government infrastructure spending and private sector construction activity. The experienced management team and established operational track record add credibility to the investment proposition.
Conservative investors should carefully evaluate the cyclical nature of the construction sector and ensure appropriate portfolio allocation considering the inherent risks associated with project-based businesses and government contract dependence.
Read More: Oswal Pumps Share Price: Stock Lists at 3% Premium After Successful IPO on NSE and BSE
Frequently Asked Questions
Q1: What is the total issue size and price band for Globe Civil Projects IPO?
Globe Civil Projects Limited IPO comprises a fresh issue of 1.68 crore equity shares with a face value of ₹10 each, aggregating to a total offer size of ₹119 crores. The IPO opens for subscription on June 24, 2025, and closes on June 26, 2025. The shares will be listed on both NSE and BSE following the subscription period. This is a pure fresh issue with no offer-for-sale component, meaning all proceeds will directly benefit the company’s operations and expansion plans.
Q2: How will Globe Civil Projects utilize the IPO proceeds?
Globe Civil Projects will allocate the ₹119 crore IPO proceeds across three main areas: ₹75 crores for working capital requirements to support ongoing and upcoming projects, ₹14.26 crores for purchasing new construction equipment and machinery to enhance operational capabilities, and the remaining funds for general corporate purposes. This allocation strategy focuses on strengthening operational capacity and financial flexibility rather than major capacity expansion or acquisitions.
