Global Civil Projects shares make stellar debut, list at 28% premium over IPO price

Shares of engineering and construction firm Globe Civil Projects made a strong debut on the stock exchanges on Tuesday, listing at a premium of 28.3 per cent. The stock opened at ₹91.10 on the BSE and ₹90 on the NSE, marking a 26.76 per cent gain over its issue price of ₹71.

The IPO of Globe Civil Projects, which included a fresh issuance of 1.68 crore shares, received an exceptional response across all investor segments, achieving an overall subscription of 80.97 times.

The Non-Institutional Investor (NII) category topped the charts with a subscription of 143.14 times, followed by Qualified Institutional Buyers (QIBs) at 82.13 times, and retail investors at 53.67 times.

Prior to the public issue, the company secured ₹35.70 crore through anchor investors.

The IPO proceeds are intended to meet the company’s working capital requirements, purchase construction machinery, and support general corporate activities. These funds will help fuel Globe Civil Projects’ growing EPC and infrastructure initiatives.

Headquartered in New Delhi and operational since 2002, the company has undertaken projects across 11 states in India. As of August 2024, it was managing 14 ongoing projects, with a total order book worth ₹892.95 crore. These span key sectors such as social and commercial infrastructure, logistics and transport, and housing.

On the financial front, the company has reported steady growth, with profit after tax reaching ₹18 crore in the first nine months of FY25, up from ₹15.38 crore in FY24.

Analysts anticipate a strong debut on the stock exchange, supported by high subscription demand, sound financials, and positive grey market premium (GMP) trends. However, they caution that investors should watch for market volatility post-listing.

MEFCOM Capital Markets served as the lead book-running manager, while Kfin Technologies was the registrar for the issue.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.

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