Small-cap stock below ₹100 will be in focus on Monday amid ₹173 crore order from NBCC
Shares of Globe Civil Projects will be on focus on Monday, July 21 following the receipt of a letter of award from NBCC (India) for the construction of infrastructure facilities and buildings valued at ₹193.13 crore.
“M/S GLOBE CIVIL PROJECTS LIMITED” has received a Letter of Award for “Construction of the Infrastructure facilities works/buildings i.e. Academic building, residential buildings, campus development etc. in campus of Central University of Punjab at village of Ghudda, Distt. Bathinda (Pb.) on EPC Basis,” said the company in an exchange filing.
Recently, the shares of Globe Civil Projects, a provider of engineering and construction services, debuted at a 28.3% premium on the exchanges on July 1. The stock launched at ₹91.10 on the BSE and ₹90 on the NSE, indicating a 26.76% increase from its issue price of ₹71. Globe Civil Projects share price ended with a premium of over 33% in market debut as against the issue price of ₹71.
This marks the company’s initial order since its launch on the bourses. On Friday, Globe Civil Projects shares ended 2.61% higher at ₹87.97 apiece on the BSE.
Globe Civil Projects IPO details
The initial public offering of ₹119 crore was priced between ₹67 and ₹71 per share.
Globe Civil Projects plans to allocate ₹75 crore of the IPO funds to meet its working capital needs, ₹14.26 crore for capital expenditures related to acquiring construction equipment/machinery, and the remaining amount will be directed to general corporate purposes and the costs related to the issue, as stated by the company.
On the last day of bidding, the initial share sale of Globe Civil Projects was oversubscribed by an impressive 86 times. The company’s market capitalization was valued at ₹565.66 crore.
Company Details
Globe Civil Projects Limited is a full-service Engineering, Procurement, and Construction (EPC) company situated in New Delhi.
The firm has successfully executed projects in 11 states throughout India, including Uttar Pradesh, Haryana, Delhi, Maharashtra, Andhra Pradesh, Karnataka, Gujarat, Chhattisgarh, Rajasthan, Uttarakhand, and Himachal Pradesh. As of August 31, 2024, the company’s total order backlog stands at ₹8,929.45 million, covering 14 different projects.
According to the red herring prospectus (RHP), the company’s listed competitors include B L Kashyap and Sons Ltd (with a P/E ratio of 29.57), Ceigall India Ltd (with a P/E ratio of 12.88), PSP Projects Ltd (with a P/E ratio of 20.38), Capacit’e Infraprojects Ltd (with a P/E ratio of 20.56), and Ahluwalia Contracts (India) Ltd (with a P/E ratio of 16.41).
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