Is Globe Civil Projects IPO Good or Bad - Detailed Review

Globe Civil Projects Limited is kicking off its initial public offering, which will be open from June 24, 2025, to June 26, 2025. While considering applying for this IPO, certain questions may arise in your mind, including whether the Globe Civil Projects IPO is good or bad, whether it is worth investing in this IPO, and so on. 

This article offers a comprehensive Globe Civil Projects IPO review, covering its business operations and fundamental analysis to help you make an informed investment choice.

Globe Civil Projects IPO Review

Globe Civil Projects Limited’s IPO presents a notable opportunity in India’s expanding infrastructure sector. With over 20 years of experience, the company has built a strong presence in transport, education, and healthcare construction, completing 37 projects and executing 13 more as of March 31, 2025. Backed by a robust order book of Rs. 669.10 crore, it reported healthy financials in FY24, including 42.35% revenue growth, 217% PAT growth, and a RoNW of 19.80%, reflecting sound profitability and capital efficiency.

The company is well-aligned with government-led infrastructure initiatives like the NIP and Gati Shakti, and has established capabilities in high-demand sectors like educational and healthcare buildings. Its expanding geographical footprint and pre-qualification credentials strengthen its competitive position.

However, investors should also consider certain risks. A significant portion of revenue comes from a limited number of government clients, especially the CPWD, and project concentration remains high. The company’s bid success rate declined to 9.09% in 9MFY25, indicating competitive pressures. It is also dependent on third-party suppliers for key raw materials, exposing it to cost and supply fluctuations.

Investors should carefully evaluate both the strengths and risks associated with the company and conduct their own independent analysis before making any investment decisions regarding the IPO.

Company Overview of Globe Civil Projects IPO

Globe Civil Projects Limited was incorporated in 2002 and is an integrated engineering, procurement, and construction (EPC) company headquartered in New Delhi. The company is engaged in the execution of infrastructure and non-infrastructure projects. These include Transport & Logistics projects (such as roads, bridges, airport terminals, and railway terminals), Social & Commercial Infrastructure (educational institutions, hospitals, and sports complexes), and Non-Infrastructure developments (residential housing and office buildings). 

While the company initially focused on educational buildings and railway infrastructure, it has diversified into specialized segments like elevated railway terminals, airport terminals, railway bridges, and healthcare facilities.

In addition to its EPC capabilities, Globe Civil is involved in the trading of construction materials, particularly TMT steel. The company also offers auxiliary services such as mechanical, electrical, and plumbing (MEP) systems, HVAC, firefighting and fire alarm systems, as well as architectural and structural work.

The company has executed projects across eleven Indian states, including Uttar Pradesh, Haryana, Delhi, Maharashtra, Andhra Pradesh, Karnataka, Gujarat, Chhattisgarh, Rajasthan, Uttarakhand, and Himachal Pradesh.

As of March 31, 2025, the company had successfully completed 37 projects and was actively executing 13 projects. These include 5 Social & Commercial Infrastructure projects, 3 Transport & Logistics projects, 4 Residential Building projects, and 1 Office Building project. The company works with several reputed clients, has been associated with marquee construction projects across India, with an order book of Rs. 669.10 crore as of March 31, 2025.

Industry Overview of Globe Civil Projects IPO

As per the D&B report, India’s economy outperformed expectations, recording a robust 8.2% growth in FY24. A key driver of this growth has been the construction sector, which holds a central role in economic development. The sector is known for its strong multiplier effect—every unit of expenditure can generate income up to five times across related industries.

The rising number of construction projects has amplified demand for a wide range of ancillary services, including project management, EPC/EPCM services, and architectural consulting. Within the EPC segment, competitive dynamics are shaped by significant upfront capital requirements and stringent technical qualifications mandated by contract-awarding authorities. These barriers to entry limit the participation of smaller players in large-scale projects.

Looking ahead, India’s construction market is on track to become the second-largest globally by 2030. The sector’s Gross Value Added (GVA) is projected to reach INR 21.8 trillion, growing at a CAGR of 7.2% between FY24 and FY30.

Financial Overview of Globe Civil Projects IPO

In FY24, Globe Civil Projects Limited delivered a strong operational performance, with revenue from operations reaching Rs. 332.16 crore, marking a 42.35% increase over FY23. This impressive growth was largely driven by a 47.72% rise in construction project receipts, which climbed to Rs. 293.27 crore from Rs. 198.53 crore in the previous year. Revenue from the trading of construction materials also increased by 11.71%, reaching Rs. 38.90 crore.

This rebound reflects a sharp recovery from FY23, which had seen revenue decline by 18.33% to Rs. 233.34 crore, primarily due to delays in a large EPC project worth Rs. 142.92 crore. That project, awarded in January 2022, contributed only Rs. 3.73 crore in FY23 due to statutory approval delays, against an expected Rs. 50 crore.

The company’s EBITDA nearly doubled to Rs. 44.65 crore in FY24, compared to Rs. 20.80 crore in FY23, with EBITDA margins improving to 13.44% from 8.91%. Notably, Return on Capital Employed (RoCE) improved significantly to 23.07% in FY24, up from 12.59% in FY23, highlighting enhanced capital efficiency and operational strength.

FY24 also saw a notable improvement in profitability, with PAT rising 217.03% to Rs. 15.38 crore, up from Rs. 4.85 crore in FY23. This surge was driven by the successful completion of several longstanding projects and the addition of three new large contracts, which collectively contributed over 50% of the construction-related revenue for the year.

As of the nine months ended December 31, 2024 (9MFY25), Globe Civil sustained its growth trajectory with Rs. 254.66 crore in revenue, EBITDA of Rs. 39.30 crore, and PAT of Rs. 17.79 crore. 

Strengths and Risks of Globe Civil Projects IPO

Let’s dive into the strengths and weaknesses to assess if the Globe Civil Projects IPO is good or bad for investors

Strengths 

• Strong project execution capabilities: With over two decades of experience, the company has completed 37 diverse projects and is currently executing 13 more across multiple infrastructure segments and geographies, supported by in-house engineering and design expertise.

• Robust and growing Order Book: As of March 31, 2025, the company had an Order Book of Rs. 669.10 crore, backed by high-value and marquee projects, including the NIT Narela Campus and AIIMS Raipur, and a consistent Book-to-Bill ratio above 2x in recent years.

• Consistent financial performance: The company recorded a revenue CAGR of 7.82% and a profit before tax CAGR of 72.92% between FY22 and FY24, while maintaining a healthy capital structure with modest leverage and improving returns on capital employed.

• Experienced leadership and team: Promoters and directors bring an average of 19 years of industry experience, supported by a seasoned senior management team that drives strategic execution, operational efficiency, and timely project delivery. 

Risks

• High dependency on CPWD as a top client: For the nine months ended December 31, 2024, and in FY24, FY23, and FY22, the company derived 10.10%, 29.77%, 57.48%, and 54.62% of its construction revenue, respectively, from projects awarded by the Central Public Works Department (CPWD). A slowdown in CPWD’s project pipeline, failure to secure new bids, or cancellation of ongoing projects may significantly affect the company’s revenue and growth trajectory.

• Revenue concentration in education sector projects: The Social & Commercial Infrastructure segment, particularly educational institutions, accounted for 61.95% of construction revenue in 9MFY25 and 47.09% in FY24. Any decline in public or private spending on education infrastructure could reduce project opportunities and impact future revenues.

• Low project conversion rate and dependency on new project awards: In the nine months ended December 31, 2024, the company achieved a low bid success rate of 9.09%, winning only 1 of 11 projects. This compares to a 54.55% success rate in FY24. Since revenues depend on the timely award of new projects, increased competition and bid disqualifications may materially impact order inflow and financial performance.

• High reliance on a few large projects: Revenue from the top 10 projects accounted for 98.33%, 89.54%, 92.82%, and 99.13% of construction revenue in 9MFY25, FY24, FY23, and FY22, respectively. As of March 31, 2025, the company had 13 ongoing projects. Any delay, cancellation, or cost escalation in a few key projects could severely affect cash flows and overall business stability.

• Dependence on third-party suppliers and raw material volatility: The company relies on external vendors for the supply of key raw materials like cement, steel, and bitumen. Any disruption in supply or significant price volatility could negatively impact project costs, margins, and execution timelines.

Strategies of Globe Civil Projects IPO

• Focus on government infrastructure and core sectors: The company plans to strengthen its presence in the government infrastructure segment, especially in the construction of educational institutions and healthcare buildings, aligning with national programs like NIP, NMP, and Gati Shakti.

• Expand project footprint and geographical presence: With operations across 11 Indian states, Globe Civil aims to enter new regions such as West Bengal and Odisha, leveraging local teams, vendor networks, and existing client relationships to broaden its revenue base and reduce geographic concentration risk.

• Enhance bidding and pre-qualification capacity: The company intends to grow its bid capacity and improve pre-qualification credentials to independently bid for larger and more complex projects—currently qualified for single projects up to Rs. 650 crore as a CPWD Class I Super Contractor.

• Strengthen execution and timely delivery capabilities: To maintain its reputation for timely project execution and high construction quality, Globe Civil will invest Rs. 14.26 crore from the IPO proceeds in acquiring new machinery and expanding human capital, project management tools, and quality systems.

• Pursue strategic alliances and joint ventures: The company plans to continue forming strategic joint ventures with reputable industry players to complement its technical and financial strengths, expand market access, and bid competitively for larger projects. It has already formed six JVs as of March 31, 2025.

• Leverage sectoral demand drivers: The company is strategically positioned to capitalize on long-term demand in education and healthcare construction, driven by rising population, income levels, urbanization, and increased government investment in public infrastructure.

Globe Civil Projects IPO Vs Peers

When compared to its listed peers, Globe Civil Projects Limited is the smallest in terms of revenue, reporting Rs. 334.81 crore in FY24. However, the company has demonstrated strong profitability with a Return on Net Worth (RoNW) of 19.80% and an EPS of Rs. 3.58, which is notable given its scale.

In contrast, larger peers such as Ahluwalia Contracts and Cegill India reported significantly higher revenues of Rs. 3,891.94 crore and Rs. 3,066.18 crore, respectively. These companies also posted higher EPS figures Rs. 55.95 for Ahluwalia and Rs. 19.37 for Cegill, alongside strong RoNW metrics.

Despite its smaller scale, Globe Civil's profitability and return ratios are competitive, even surpassing some mid-sized players like B. L. Kashyap (RoNW 10.52%) and Capacit’e Infraprojects (RoNW 7.93%), highlighting its operational efficiency and financial strength in a crowded EPC landscape.

Objectives of Globe Civil Projects IPO 

The fresh issue by the IPO will be used by the company for the following purposes:

• Funding the company’s working capital requirements

• Funding capital expenditure requirements towards the purchase of equipment/machinery

• General corporate purposes.

Globe Civil Projects IPO Details

IPO Dates

Globe Civil Projects Limited IPO will be open for subscription from June 24, 2025 to June 26, 2025. The allotment of shares to investors will take place on June 27, 2025, and the company will be listed on the NSE and BSE on July 1, 2025.

IPO Issue Price

Globe Civil Projects Limited is offering its shares in the price band of Rs 67 to Rs 71 apiece. This means you would require an investment of Rs. 14,981 per lot (211 shares) if you are bidding for the IPO at the upper price band.

IPO Size

Globe Civil Projects is issuing a total of 1,67,60,560 shares, which is worth Rs 119 crores, which is entirely a fresh issue.

IPO Allotment Status

Investors who applied for the IPO can check their IPO allotment status on June 27, 2025, through the registrar's website: Kfin Technologies Limited, BSE, NSE or their stockbroker platform.

IPO Listing Date

The shares of Globe Civil Projects Limited will be listed on the NSE and BSE on July 1, 2025.

IPO Application Link

Open a demat account with Rupeezy today and enjoy a seamless experience when applying for the IPO. With an easy-to-use platform, Rupeezy makes the IPO application process quick and hassle-free.

Apply for Globe Civil Projects IPO