Globe Civil Projects Ltd. Files for IPO to Raise Funds for Infrastructure Expansion

New Delhi, October 15, 2024: Globe Civil Projects Limited, an integrated engineering, procurement and construction (EPC) company, has filed preliminary papers with the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO), a statement from the company said. 

Globe Civil Projects is a registered Class-1 Super contractor with Central Public Work Department, Government of India and can tender for projects up to Rs 650 crore.

Mefcom Capital Markets, led by Mr. Sameer Purohit, is the merchant banker for the Globe Civil Projects IPO.

The Company plans to raise funds entirely via fresh issue of 1.9 crore equity shares with no offer-for-sale component. It plans to utilise Rs. 75 crore out of the net proceeds for funding working capital requirements, Rs. 14.06 crore as capital expenditure towards purchase of equipment or machineries; and the remainder amount will be used for general corporate purposes, the statement added.

Promoters hold an aggregate of 88.14% shareholding in the Company, while 11.86% is held by public shareholders including Chanakya Opportunity Fund I.

Globe Civil Projects Limited has undertaken projects in 11 states of India. The company is into the execution and construction of infrastructure projects comprising Transport and Logistics projects, Social and Commercial projects and Non-Infrastructure projects comprising commercial offices and housing. Apart from Infra and non-infra projects, the Company provides a wide range of services, including mechanical, electrical, and plumbing, architectural and structural work, HVAC, and fire alarm systems, the statement said.

The company’s principal competitive strengths include its strong project management and execution capabilities, a growing order book, higher pre-qualification credentials, consistent financial performance, and a team of experienced promoters, directors, and managers. 

The strategy focuses on securing government infrastructure projects, expanding its geographical footprint, enhancing pre-qualification and bidding capacities, and striving for timely delivery and quality execution.

The company has completed 37 projects in the last two decades. It has 12 ongoing projects that include five social and commercial infrastructure projects, three transport and logistics projects, three residential building projects and one office building project. Its order book was Rs 892.95 crore as of August 31, 2024.