CSM Technologies IPO opens today. Check brokerages review, GMP, subscription and other details

The initial public offering (IPO) of CSM Technologies will open for subscription on Tuesday, with the grey market signalling modest listing gains. The company’s shares were commanding a grey market premium (GMP) of about 4%, indicating a muted but positive debut expectation.

The IPO will remain open until June 26. It is a book-built issue with a price band of Rs 147-155 per share. The issue comprises a fresh issue and an offer for sale, with the company seeking to raise funds for growth and existing shareholders partially monetising their holdings.

Retail investors can bid for one lot and in multiples thereafter.

Digital transformation company

Founded in 1998, CSM Technologies is a GovTech-focused digital transformation company that provides software products, consulting and system integration services to governments, public sector enterprises and enterprises.The company serves multiple sectors, including mining, agriculture, e-governance, public services, education, healthcare and tourism. Its offerings span artificial intelligence, cloud, cybersecurity, enterprise applications and digital governance platforms.

CSM has operations across multiple geographies, including India, Africa and North America.

Financial performance

The company has reported steady growth over the past three financial years.

Revenue increased to Rs 180.67 crore in FY25 from Rs 167.71 crore in FY24, while profit after tax rose to Rs 15.82 crore from Rs 12.63 crore during the same period. Earnings per share stood at Rs 3.64 for FY25.The issue is valued at a P/E of about 42.6 times FY25 earnings.

Should investors subscribe?

Brokerage Swastika Investmart has assigned a “Neutral” rating to the IPO. The brokerage said CSM Technologies operates in the niche and growing digital governance segment and has built long-standing relationships with government clients. However, it noted that the IPO is priced at a significant premium to listed peers, leaving limited room for valuation comfort.

Swastika also pointed to risks such as dependence on government contracts, relatively high debtor days and intense competition in the IT services industry.

“The IPO is priced at a significant premium to listed peers despite its relatively smaller scale. While investors seeking exposure to the GovTech space may consider the issue, the premium valuation and execution risks warrant a neutral view,” the brokerage said.

With the GMP at around 4%, the grey market indicates only modest listing expectations. Investors may therefore focus more on the company’s long-term growth prospects in digital public infrastructure and enterprise technology rather than near-term listing gains.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)