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Globe Civil Projects Ltd, a civil construction and infrastructure development firm, witnessed a strong stock market debut this week, closing over 33% higher than its IPO issue price of INR 71. The company's INR 119 crore public issue received a solid response from investors, with an overall subscription of 86 times on the final day of bidding. The stock listed at INR 91.10 on the BSE and INR 90 on the NSE, before ending the session at INR 94.72 and INR 94.46 respectively. The proceeds from the IPO are intended to fund working capital needs, machinery purchases, and general corporate purposes.
Globe Civil Projects Ltd made a notable entry into the stock market this week with its shares listing at a significant premium to the issue price. On the BSE, the stock opened at INR 91.10 per share, a 28.30% jump from the issue price of INR 71. It climbed further during the session to touch an intra-day high of INR 95, eventually closing at INR 94.72, representing a 33.40% gain. On the NSE, it debuted at INR 90 and closed at INR 94.46, marking a 33% increase from the issue price. The strong opening lifted the company's market capitalisation to INR 565.66 crore on its debut day. Advertisement
Globe Civil Projects' initial public offering, which closed for subscription last week, received an overwhelming response from institutional and retail investors alike. The INR 119 crore IPO was subscribed 86 times, indicating high investor interest. The price band for the offer was fixed at INR 67 to INR 71 per share. The entire IPO was a fresh issue, with no offer-for-sale component.
According to the company's regulatory filing, approximately INR 75 crore from the IPO proceeds will be utilised to meet working capital requirements. An additional INR 14.26 crore has been earmarked for capital expenditure, specifically the purchase of construction equipment and machinery. The balance amount will be used to cover general corporate expenses and costs associated with the IPO process.
Globe Civil Projects is involved in executing civil construction works such as roads, bridges, stormwater drains, and other public infrastructure projects. Its operations are largely concentrated in government and semi-government contracts. The company's entry into the listed space comes at a time when investor sentiment around infrastructure-focused firms has been notably positive, partly due to continued public spending and ongoing policy push under programs like PM Gati Shakti and the National Infrastructure Pipeline.
While several recent infrastructure IPOs have drawn significant interest, post-listing performance across the sector has varied, depending on order execution, margins, and scale of operations. Globe Civil Projects will likely be scrutinised on similar parameters in the coming quarters.
Source PTI
5th Jun, 2025
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