Globe Civil Projects and VMS TMT File for IPO

2 Oct 2024 , 08:51 PM

EPC company Globe Civil Projects and Gujarat-based VMS TMT have both filed preliminary papers with SEBI to raise funds through initial public offerings (IPO).

Global Civil Projects:

New Delhi-headquartered Globe Civil Projects plans to raise funds entirely via a fresh issue of 1.9 crore equity shares, with no offer-for-sale (OFS) component. The entire proceeds will go directly to the company. Out of the net IPO proceeds, ₹75 crore will be allocated for working capital, ₹14.06 crore for purchasing equipment and machinery, and the remainder for general corporate purposes.

The promoters of Globe Civil Projects hold 88.14% of the company, while public shareholders, including Chanakya Opportunity Fund I, own the remaining 11.86%. The company specializes in infrastructure projects, offering mechanical, electrical, and plumbing (MEP) services, HVAC, firefighting systems, and architectural and structural work. Over the past two decades, Globe Civil Projects has completed 37 projects, with 12 ongoing, including five from the social and commercial infrastructure segment. As of August 2024, the company’s order book stands at ₹892.95 crore. Mefcom Capital Markets is the merchant banker for this IPO.

VMS TMT:

On the other hand, VMS TMT, based in Gujarat, will also raise funds solely through a fresh issue of 1.5 crore equity shares. The company plans to utilize ₹46.4 crore from the IPO proceeds for setting up a solar power plant, ₹30 crore for long-term working capital, ₹11 crore for debt repayment, and the remaining for general corporate purposes.

As of August 2024, VMS TMT has outstanding borrowings of ₹252.5 crore, with promoters holding 96.28% of the company’s shares. Public shareholders, including Chanakya Opportunities Fund I, own 3.72%. VMS TMT manufactures thermo mechanically treated (TMT) bars at its Ahmedabad facility, with an annual installed capacity of 2 lakh metric tonnes (MT) and a production of 1,60,321 MT in FY24.

Arihant Capital Markets is managing the IPO for VMS TMT.