CSM Technologies IPO invites bids: GMP up 3%; should you park your money?

The initial public offering (IPO) of IT solutions provider CSM Technologies Limited opens for public subscription today, June 24, 2026, through which the company seeks to raise ₹145.78 crore from the market. The company has already mopped up ₹20 crore from anchor investors, with bidding concluding on June 23. This is lower than the earlier proposed anchor allocation of about ₹43.29 crore involving 3.831 million shares.

 

The company has finalised the allocation of 1.77 million shares to two anchor investors, including Nova Global Opportunities Fund PCC and Zeal Global Opportunities Fund, at ₹113 per share, according to a BSE filing.

 

CSM Technologies IPO details

The public issue is entirely a fresh issue of 12.9 million equity shares amounting to ₹145.78 crore. The offering does not have any offer for sale (OFS) component.

 

CSM Technologies IPO is being offered at a price band of ₹107 to ₹113 and a lot size of 132 shares. Investors can bid for a minimum of 132 shares and in multiples thereof. A retail investor would need ₹14,916 to bid for one lot of 132 shares, and ₹1,93,908 is needed to bid for a maximum of 13 lots or 1,716 shares.

 

The issue will be available for public subscription till Wednesday, June 24, 2026. Following that, the basis of allotment is likely to be finalised on Tuesday, June 30, 2026.

 

Shares of CSM Technologies are slated to make their D-Street debut on Thursday, July 2, 2026.

 

The company plans to use the proceeds from the issue for funding working capital requirements, prepayment or repayment of certain outstanding borrowings, inorganic growth through unidentified acquisitions and strategic initiatives, and general corporate purposes.

CSM Technologies IPO latest grey market premium

In the grey market, the unlisted shares of CSM Technologies Limited were trading at a decent premium on Wednesday. Market sources tracking unofficial activity indicated shares were exchanging hands at around ₹177 per share, reflecting a grey market premium of ₹4, or 3.54 per cent, over the upper end of the issue price. 

Should you subscribe to CSM Technologies IPO?

SBI Securities – Neutral

SBI Securities has assigned a Neutral rating to the issue, stating that it prefers to track the company’s performance for a few quarters post listing.

 

The brokerage highlighted that the company has delivered a CAGR of 11.4 per cent/2.5 per cent/-5.6 per cent in revenue/EBITDA/PAT respectively over FY23–FY25.

 

At the upper price band of ₹113, the issue is valued at a 9MFY26 annualised P/E of 30.7x on a post-issue basis, which the brokerage said appears relatively attractive compared to peers.

 

“The company has a 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, the 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,” said the brokerage in its report.

Swastika Investmart – Neutral

Swastika Investmart has also assigned a Neutral rating, stating that aggressive investors may consider moderate participation for the long term in the dividend-paying company.

 

The brokerage noted that at 31x P/E, the IPO is priced at a significant premium to listed peers despite its relatively smaller scale. While revenue has grown steadily, profit after tax has remained volatile, limiting earnings visibility. Ebitda margins have recovered in FY25 but are yet to reach FY23 levels, indicating room for further operational improvement.

 

“The IPO price is close to the company’s book value (NAV), which offers some valuation support. However, the company’s revenue is much smaller than its listed peers,” said the brokerage in its report.

About CSM Technologies

CSM Technologies Limited (CSM) is an IT/ITeS solutions provider specializing in digital transformation and e-governance services. The company operates across India and internationally in over 14 countries through its subsidiaries, delivering technology-led solutions across multiple sectors, including mining, government & public services, agriculture, industry & trade facilitation, education, healthcare, and tourism.    ============================== 

(Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised.)