| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹107 to ₹113 | 132 | 24th Jun, 2026 – 29th Jun, 2026 | ₹146 Cr |
CSM Technologies Ltd
Founded in 1998 and headquartered in Bhubaneswar, CSM Technologies is a specialized GovTech and digital transformation company with over 27 years of experience in developing technology platforms for governments, public institutions and enterprises. The company serves central and state government departments, public sector undertakings, development agencies and select private enterprises, helping them digitize critical workflows, improve service delivery and enhance operational efficiency. Its operations span multiple sectors including Mining, Government & Public Services, Agriculture, Industry & Trade Facilitation, Education, Healthcare and Tourism. CSM offers end-to-end technology solutions across consulting, application development, implementation and post-deployment support, leveraging capabilities in Artificial Intelligence, data analytics, cloud computing and IoT. Over the years, the company has expanded beyond India and established a presence across 14 countries, including markets in Africa and North America. Supported by deep domain expertise, proprietary technology platforms and long-standing government relationships, CSM has positioned itself as a niche digital infrastructure partner driving large-scale digital transformation initiatives.
Objective of CSM Technologies Ltd
The company proposes to utilize net proceeds from the issue towards the following objects:
- Funding working capital requirements of the company;
- Prepayment or repayment of all or a portion of certain outstanding borrowings availed by company; and
- Achieving inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes.
Rationale To CSM Technologies Ltd
Investment Rationale
Mission-critical government platforms create high entry barriers and revenue visibility
CSM Technologies has built a strong competitive position in government-led digital transformation through nearly three decades of domain expertise, deep government relationships and mission-critical platforms. Its strongest presence is in the mining sector, where digital mineral management systems are deployed across Odisha, Jharkhand and Chhattisgarh. These three states together account for nearly 80% of India’s major mineral production. The company operates across 10 verticals, including Government & Public Services (25.7% of FY25 revenue), Mining (24.7%), Education (14.8%) and Agriculture (16.1%) reducing dependence on any single sector. Supported by CMMI Level 5 and SOC 2 certifications, long-standing government empanelment’s and a successful execution track record, CSM enjoys high entry barriers in a market where qualification requirements are often as important as technical capabilities. As of March 2026, the company had an order book of Rs. 358 crores, equivalent to nearly 1.8x FY25 revenue, providing strong revenue visibility. Customer stickiness remains exceptionally high, with 95.7% of 9MFY26 revenue generated from existing customers, reflecting the mission-critical nature of its solutions and long-term digital transformation partnerships.
Proprietary platforms and emerging technologies drive scalable growth
Unlike traditional IT service providers that rely primarily on manpower-led execution, CSM has developed a suite of proprietary platforms and intellectual property that improve scalability and strengthen margins. The company’s Low-Code No-Code framework enables rapid application deployment, while its AI orchestration platform supports large-scale automation and decision-making. It also holds a patent for an automated, tamper-resistant ore-sampling solution that has been recommended by the Ministry of Mines for wider adoption. This platform-led approach is beginning to translate into improved operating performance, with EBITDA margins expanding from 14.7% in FY25 to 18.2% in 9MFY26, while ROE and ROCE stood at 23.8% and 24.4%, respectively. Supported by a dedicated emerging technologies team focused on AI, analytics and automation, a presence across 14 countries and ongoing evaluation of acquisitions in cybersecurity and AI, CSM is well positioned to benefit from accelerating government technology spending, growing AI adoption and increasing demand for digital infrastructure solutions.
Valuation of CSM Technologies Ltd
CSM Technologies Limited (CSM) is a digital transformation and e-governance solutions provider with a strong presence across governance, mining, agriculture, education and healthcare. The company reported revenue of Rs. 166 crores, EBITDA of Rs. 30 crores and PAT of Rs. 15 crores in 9MFY26, with both EBITDA and PAT already exceeding their respective FY25 levels. Profitability improved sharply during the period, with EBITDA margin expanding to 18.2% from 14.7% in FY25 and PAT margin rising to 8.8% from 7.0%. The company also enjoys healthy revenue visibility, with an order book of Rs. 376 crores as of December 2025, equivalent to nearly 2.3x its 9MFY26 revenue, while customer concentration has reduced meaningfully over the past three years. The key concern, however, remains earnings quality. Operating cash flow turned negative at Rs. 24 crores in 9MFY26, receivables increased to Rs. 85 crores from Rs. 22 crores in FY23, working capital days stretched to 85 from 64, and debt-to-equity rose to 0.86x from 0.18x over the same period. While margins have improved materially, the recovery is concentrated in a single nine-month period and has yet to demonstrate sustainability across business cycles. Further, despite a growing non-government order pipeline, revenue remains dependent on government projects, with Odisha contributing 62.6% of 9MFY26 revenue. Given the stretched working capital profile and rising leverage, we would prefer to avoid the issue and reassess the business once cash conversion and profitability trends stabilize over the next few quarters. At the upper end of the price band of Rs. 113 per share, the issue is valued at a P/E of 29.7x based on annualized FY26 earnings. While the valuation appears reasonable, stretched working capital, negative operating cash flows and rising leverage outweigh the positives. Hence, we recommend an “AVOID” rating for the issue.
What is the CSM Technologies Ltd IPO?
The initial public offer (IPO) of CSM Technologies Ltd offers an early investment opportunity in. A stock market investor can buy CSM Technologies Ltd IPO shares by applying in IPO before All CSM Technologies Ltd shares get listed at the stock exchanges. An investor could invest in CSM Technologies Ltd for short term listing gain or a long term.
How to apply for the CSM Technologies Ltd IPO through StoxBox?
To apply for the CSM Technologies Ltd IPO through StoxBox one can apply from the website and also from the app. Click here
When will the CSM Technologies Ltd IPO open?
CSM Technologies Ltd IPO is opening on 24th Jun 2026. Apply Now
What is the lot size of the CSM Technologies Ltd IPO?
The Lot Size of CSM Technologies Ltd is 132 equity shares. Login to your account now.
When is the CSM Technologies Ltd IPO allotment date?
The allotment Date for CSM Technologies Ltd IPO is 30th Jun 2026. Login to your account now.
When is the CSM Technologies Ltd IPO listing date?
The listing Date for CSM Technologies Ltd is 02nd July 2026. Login to your account now
What is the minimum investment required for the CSM Technologies Ltd IPO?
In the Retail segment the minimum investment required is Rs. ₹14,916. Login to your account now
What is the maximum investment allowed for CSM Technologies Ltd IPO?
In the Retail segment the maximum investment requirement is Rs. 1,93,908. Login to your account now
What are the risks associated with investing in the CSM Technologies Ltd IPO?
- CSM Technologies derives approximately 74% of its FY25 revenues from government tenders, making the business materially exposed to delays in tender issuance, adverse policy shifts, and contract renegotiations. Any prolonged slowdown in public sector IT procurement or change in government spending priorities could significantly impair order inflows and revenue visibility.
- The company’s revenue base remains heavily concentrated in Odisha, which contributed approximately 73% of FY25 revenues. This exposes CSM to outsized risk from any adverse administrative, political, or budgetary developments specific to the state, with geographic diversification still at an early stage and the eastern region continuing to dominate the operational mix.
- CSM’s top 10 customers accounted for approximately 77.5% of FY25 revenues, meaning the loss of even one or two key relationships could materially impair the order book. This concentration risk is amplified by a deteriorating working capital position receivable days stretching and negative operating cash flows leaving limited financial flexibility to absorb any client-level disruption.
When will the CSM Technologies Ltd IPO shares be credited to my Demat account?
The CSM Technologies Ltd be credited to the account on allotment date which is 30th Jun 2026. Login to your account now
Where can I find the CSM Technologies Ltd IPO prospectus?
The prospectus of CSM Technologies Ltd IPO prospectus can be find on the website of SEBI, NSE and BSE
