The IPO, entirely a fresh issue of up to 1.29 crore shares, closes on June 29. | Photo Credit: istock.com

The ₹146-crore initial public offering (IPO) of CSM Technologies opens today at the price band of ₹107-113. The IPO, entirely a fresh issue of up to 1.29 crore shares, closes on June 29.

Investors can bid for a minimum of 132 equity shares and in multiples of 132 equity shares thereafter.

The Offer is being made through the book-building process, wherein not more than 50% of the net offer is allocated to qualified institutional buyers, and not less than 15% and 35% of the net offer is assigned to non-institutional bidders and retail individual bidders, respectively.

Anchor investors

As part of IPO process, CSM Technologies, which is among the few IT solutions companies that delivered first-of-its-kind projects for government and private sector, garnered ₹20 crore from anchor investors on Tuesday. The company informed the bourses that it allocated 17,70,120 equity shares at ₹113 per share to anchor investors. Some of the marquee institutions that participated in the anchor include Nova Global Opportunities Fund PCC-Touchstone and Zeal Global Opportunities Fund.

Utility of funds

The proceeds from the fresh issue worth ₹56 crore will be for funding working capital requirements of the company, ₹22.62 crore prepayment or repayment of all or a portion of certain outstanding borrowings availed by the company, achieving inorganic growth through unidentified acquisitions and other strategic initiatives, and general corporate purposes.

Company Information

Incorporated in 1998, the company is amongst the few IT solutions companies, who have delivered first-of-its-kind projects for government as well as for the private sector. The company also specialises in providing GovTech solutions and digital transformation services.

It provides technology solutions across sectors such as mining and allied services, government & public services, agriculture and allied services, industry and trade facilitation, education, healthcare and tourism (Source: CARE Report).

Keynote Financial Services Limited is the book-running lead manager, and KFin Technologies Limited is the registrar of the offer.

Brokers’ views

Anand Rathi:

CSM Technologies Ltd, with a strong market share in the industry valued at ~41.6x P/E on FY25 earnings (at the upper band) is valued fairly. Considering the company’s consistent track record & superior financial metrics, the valuation is fully priced in. Hence, we recommend subscribing for long term gains.

SBI Securities: 

CSM Technologies operates in the high‐entry‐barrier GovTech space, providing mission-critical digital transformation and e-governance platforms to government and regulated sectors. The company has delivered a CAGR of 11.4%/2.5%/-5.6% in Revenue/EBITDA/PAT respectively over FY23-25.

At the upper price band of Rs 113, the issue is valued at 9MFY26 annualised P/E of 30.7x on post-issue basis which looks relatively attractive to its peers. The company has relatively stronger margin profile and benefits from its niche positioning, scalable solution architecture, and structural tailwinds driven by increasing government expenditure on digital infrastructure. The business however, continues to be characterized by high receivables, with receivable days increasing from 58/55 days in FY23/FY24 to 89 days in FY25. Further, company expects this to remain elevated at 129 days in FY26E/FY27E which poses cash conversion and liquidity risks primarily due to milestone-based revenue recognition and elongated payment cycles. Hence, we assign a Neutral rating to the issue and prefer to track its performance for few quarters post listing.

Published on June 24, 2026