Globe Civil Projects Ltd. IPO

We are an integrated engineering, procurement and construction (“EPC”) company headquartered in New Delhi. We are into execution and construction of infrastructure projects comprising of Transport & Logistics projects (which comprise of construction and/ or upgrades of roads and ... bridges, airport terminals and railway terminals) and Social and Commercial projects (which comprise of educational institutions, sports infrastructure and hospitals) and non-infrastructure projects comprising of commercial offices and housing. While our primary focus and strength had been deeply rooted in constructions of education institution buildings, we have diversified in undertaking specialized infrastructure and non-infrastructure projects, such as railway bridges, airport terminal, elevated railway terminal and railway bridges and hospitals. The revenue model of our Company is as under: Our revenue is derived from two business segments, namely (i) construction project receipts; and (ii) trading of goods. Construction project receipts Our construction project receipts can be categorized into two (2) broad categories, namely Infrastructure project and Non-Infrastructure projects. Infrastructure projects are divided into (i) Transport and Logistics projects, which comprise of roads and bridges, airport terminal and railway terminal; and (ii) Social and Commercial projects, which comprise of education institutions, sports infrastructure and hospitals. Non-Infrastructure projects are divided into (i) commercial offices and (ii) housing. Trading of goods Our Company being in the business of construction requires steel, cement, sand, aggregates, etc., for executing the projects awarded to it. In order to execute the work on time and to reduce the cost of procurement for the above items required for completion of a projects, we stock our principal raw material – TMT steel. After captive consumption, residue TMT steel are sold in the open market to third party contractors, traders, etc. on commercially viable terms. The business model of our Company is as under: Our approach to project execution is structured around different types of contracts that define pricing, cost adjustments, and project scope: Fixed price contracts provide for a single price for the total amount of work, subject to variations pursuant to changes in the client’s project requirements. Contracts with escalation clauses: Contracts with escalation clauses are contracts having price escalation clauses for increases in the cost of principal raw material, such as TMT bars, cement, concrete and electrical items, etc., as specified in the contracts. Fixed price contracts and contracts with escalation clauses can be further classified into EPC project contracts, item-rate contracts and percentage rate contracts. EPC project contract: For EPC project contracts, the client supplies conceptual information pertaining to the project and spells out the project requirements and specifications Item-rate contracts are contracts where we need to quote the price of each item presented in a BOQ furnished by the client Percentage rate contracts require us to quote a percentage above, below or at par with the estimated cost furnished by the client. Read more

India's economy has exceeded expectations, registering an 8.2% growth in FY24. Construction sector is one of the major segments that drives an economy. A unit increase in expenditure in construction sector has a multiplier effect on other sectors with a capacity to generate income as high as five ... times in other sectors. Growth in the number of construction projects creates as well as strengthens the demand for a myriad range of products and services. These include project management services, EPC/EPCM services and architecture consulting services, to name a few. The competitive dynamics within the EPC industry are primarily shaped by substantial upfront capital investments and stringent technical norms established by contract awarding authorities, which restrict smaller players from entering large-scale projects. Read more