CSM Technologies opened its ₹146 crore mainboard IPO today at a price band of ₹107-113 per share, marking the final major IPO opening of the week. The ₹145.78 crore fresh issue of 1,29,01,000 shares is entirely priced at ₹107-₹113 per share with a lot size of 132 shares. The IPO will conclude on Monday, June 29, with allotment expected on Tuesday, June 30. CSM Technologies will list on BSE and NSE on Thursday, July 2. The company has reserved 50% for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and 35% for retail investors. With the upper price band at ₹113, the minimum investment requirement for retail investors is ₹14,916, while the maximum lot size is 13 shares for ₹1,93,908.
CSM Technologies successfully raised ₹20 crore from two anchor investors on June 23, a day before the public issue opens. The company allocated 17.7 lakh shares to two anchor investors at ₹113 per share each. Nova Global Opportunities Fund PCC-Touchstone and Zeal Global Opportunities Fund each acquired 8.85 lakh shares worth ₹10 crore each. However, this amount falls significantly short of the proposed ₹43.29 crore through the anchor book, involving 38.31 lakh shares representing up to 60% of the QIB portion. The subdued performance of the domestic technology sector, with the Nifty IT index declining 29% in the last six months due to AI impact concerns, could be contributing to weak demand.
The proceeds from the ₹56 crore fresh issue will be utilized for funding working capital requirements of the company, ₹22.62 crore prepayment or repayment of outstanding borrowings, achieving inorganic growth through unidentified acquisitions and other strategic initiatives, and general corporate purposes. Incorporated in 1998, CSM Technologies is among the few IT solutions companies that have delivered first-of-its-kind projects for government and private sector clients. The company specializes in GovTech solutions and digital transformation services, providing 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. Keynote Financial Services Limited serves as the book-running lead manager, while KFin Technologies Limited acts as the registrar for the offer.
CSM Technologies is commanding a grey market premium of ₹4 per share (3.54%), indicating strong investor confidence ahead of listing. Based on grey market activity over the past seven sessions, the estimated listing price is ₹117 per share, which is 3.54% higher than the IPO price of ₹113. Anand Rathi recommends subscribing to the issue for long-term gains, noting that the company is valued fairly at 41.6x P/E on FY25 earnings at the upper band. SBI Securities assigns a Neutral rating to the issue, citing the company's 9MFY26 annualized P/E of 30.7x on post-issue basis as relatively attractive to peers. However, concerns remain about high receivables with receivable days increasing from 58/55 days in FY23/FY24 to 89 days in FY25, expected 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.
Overall, nine public issues are scheduled to open this week, while six companies are slated to make their stock market debut. According to Moneycontrol, these nine companies are looking to raise ₹1,159.2 crore through IPOs, including about ₹896 crore from the three mainboard issues. Recent strength in the equity market has also provided support to primary market activity. The SME segment continues to see active participation with multiple issues scheduled throughout the week, with Jivial Industries opening from June 23-25 and Dhanwel Hybrid Seeds opening from June 24-29. Additionally, Knack Packaging is expected to announce its IPO price band next week, comprising a fresh issue of ₹475 crore and an offer-for-sale of 70 lakh equity shares by promoters and existing shareholders.
