The initial public offering of CSM Technologies opened for subscription on Wednesday, June 24, with the grey market signalling modest listing gains. According to latest reports from Goodreturns, the company's shares were commanding a grey market premium (GMP) of ₹4 per share, indicating a potential listing price of approximately ₹117 per share based on the upper price band of ₹113. The IPO will remain open until June 29, with a price band of ₹107-113 per share for the book-built issue. As per Goodreturns, the subscription got off to a slow start with 0.13x overall subscription achieved by 11:19 AM on Day 1, with retail investors subscribing 0.18 times and non-institutional investors at 0.30 times.
The IPO comprises both a fresh issue and an offer for sale, with the company seeking to raise funds for growth and existing shareholders partially monetising their holdings. As reported by The Economic Times, CSM Technologies serves multiple sectors including mining, agriculture, e-governance, public services, education, healthcare and tourism. The company's offerings span artificial intelligence, cloud, cybersecurity, enterprise applications and digital governance platforms, with operations across India, Africa and North America. The CSM Technologies IPO is a book build issue of ₹145.78 crore, comprising a fresh issue of 1.29 crore shares with a price band set between ₹107-113 per share. The company plans to utilise proceeds from the fresh issue to fund working capital requirements, repay debt, and support inorganic growth initiatives. Ahead of the public issue, the company successfully raised ₹20 crore from anchor investors on June 23.
According to The Economic Times, revenue increased to ₹180.67 crore in FY25 from ₹167.71 crore in FY24, while profit after tax rose to ₹15.82 crore from ₹12.63 crore during the same period. Earnings per share stood at ₹3.64 for FY25. The issue is valued at a P/E of about 31 times FY25 earnings, with retail investors able to bid for one lot and in multiples thereafter. The allotment of shares is proposed to be finalised on June 30, with shares scheduled to list on BSE and NSE on July 2. As noted by Goodreturns, while revenue has grown steadily, profit after tax has remained volatile, limiting earnings visibility.
As reported by Goodreturns, brokerage Swastika Investmart Ltd has assigned a Neutral rating to the IPO, noting that "at 31x P/E, the IPO is priced at a significant premium to listed peers despite its relatively smaller scale." The research firm highlighted that "while revenue has grown steadily, profit after tax has remained volatile, limiting earnings visibility." However, they noted that "the IPO price is close to the company's book value (NAV), which offers some valuation support." The brokerage suggested that "aggressive investors may park moderate funds for long term in this dividend paying company," while acknowledging that the company's revenue is much smaller than its listed peers. The current grey market premium of ₹4 per share suggests modest listing gains compared to some recent IPOs.
With the GMP at ₹4 per share and slow subscription progress on Day 1, the grey market indicates cautious investor sentiment for CSM Technologies. According to Goodreturns, the current GMP of ₹4 hints at modest listing gains compared to some recent IPOs, suggesting that investors who are looking for only listing gains should monitor subscription trends before making a decision. The company's positioning in India's GovTech sector for over two decades provides a niche opportunity, but the premium valuation and execution risks warrant careful consideration. The healthy pipeline of IPOs including CSM Technologies, Aastha Spintex (₹170 crore, opening June 29) and Knack Packaging (₹439.5 crore, opening July 1) reflects sustained fundraising activity despite intermittent volatility in the secondary market.
