Globe Civil Projects Ltd IPO

For the nine months period ended December 31, 2024 and in Fiscal 2024, Fiscal 2023 and Fiscal 2022, the company derived 10.10%, 29.77%, 57.48% and 54.62%, respectively, of its revenue from operations from construction project receipts business segment from projects developed by Central Public Works Department ("CPWD"), our top customer. Any slowdown or inability to win new project awards from CPWD (whether due to a slowdown or cessation in new projects being undertaken by such entities), an inability to qualify for and successfully compete for new projects or otherwise) or the loss of any of its current significant projects (whether due to restructuring or termination of such projects) could adversely affect its business, results of operations and financial condition.

Its business and profitability are substantially dependent on the demand for construction services, change in budgetary allocation and the requirements for construction projects in the infrastructure and non-infrastructure sectors across India. During the nine months period ended December 31, 2024 and in Fiscal 2024, the Social & Commercial Infrastructure segment (Education institutions) contributed to 61.95% and 47.09%, respectively, of its revenue from operations (construction project receipts). Any reduction in the activity and expenditure levels in such sectors may adversely affect its business and prospects and may reduce the number of projects the company undertake and impede its growth.

For the nine months ended December 31, 2024, the Company submitted successful bids for 11 projects but secured only one, reflecting a success rate of 9.09%, compared to 54.55% in FY24. Its revenues depends upon the award of new contracts and the timing of those awards. Additionally, the competitive bidding process, failures to meet pre-qualification criteria, and non-qualification due to technical issues may hamper its revenue. Consequently, the company results of operations and cash flows may be adversely affected or fluctuate materially from period to period.

For the nine months period ended December 31, 2024 and in Fiscal 2024, Fiscal 2023 and Fiscal 2022, the company derived 3.14%, 11.71%, 14.92% and 11.23%, respectively, of its revenue from operations from trading of goods, primarily TMT steel. Any reduction in trading activity, changes in market demand, or fluctuations in the price of TMT steel may reduce its revenue from this segment and, consequently, impact its total revenue from operations.

As of March 31, 2025, its Order Book, on a consolidated basis, was Rs. 6,691.02 million. Projects included in its Order Book may be delayed, modified or cancelled for reasons beyond its control, or not fully paid for by its clients, which could materially harm the company cash flow position, revenues or profits.

For the nine months period ended December 31, 2024 and for the Fiscal 2024, Fiscal 2023 and Fiscal 2022, its revenue from operations from projects undertaken under JVs contributed 36.40%, 33.36%, 28.98%, and 35.15%, respectively, amounting to Rs. 897.92 million, Rs. 978.44 million, Rs. 575.36 million, and Rs. 891.50 million, respectively. The failures of a JV counterparty or consortium member to perform its obligations could impose additional financial and performance obligations resulting in reduced profits or, in some cases, significant losses, and it may adversely affect its business, results of operations and financial condition.

For the nine months period ended December 31, 2024 and for the Fiscal 2024, Fiscal 2023 and Fiscal 2022, its % contribution to revenue from operations (construction project receipts) from its top ten projects was 98.33%, 89.54%, 92.82% and 99.13%, respectively. Further, the Company's revenue from operations (construction project receipts) stood concentrated in the top 10 ongoing projects out of the total ongoing projects during the Fiscals 2024, 2023 and 2022. As on March 31, 2025, there were 13 ongoing projects. Any delay or loss of any of these projects could adversely affect its business, cash flow position, results of operations and financial condition.

Its business and profitability are substantially dependent on the availability and cost of its raw materials, and the company is dependent on third party suppliers for meeting its raw material requirements. Any disruption to the timely and adequate supply, or volatility in the prices of, raw materials may adversely impact its business, results of operations and financial condition.

The company is increasingly dependent on sub-contractors for workforce, materials, and specialized work. Subcontractor costs were 35.14% in FY23, 44.57% in FY24, and 54.65% for the nine months ended December 31, 2024-reflecting a rising trend. Its business in manpower intensive, and the company is dependent on an adequate supply and availability of contract labour engaged by its sub-contractors at the company project locations. Any unavailability or shortage of such supply of contract labour for its project sites could adversely affect its operations.

The determination of the Price Band is based on various factors and assumptions and the Issue Price of the Equity Shares, market capitalization and price to earnings ratio based on the Issue Price of the Equity Shares, may not be indicative of the market price of the Company on listing or thereafter and, as a result, you may lose a significant part or all of your investment.