IPO Size: Rs. 146 cr, entirely Fresh Issue

• Rs. 56 cr for working capital
• Rs. 23 cr debt repayment of Rs. 70 cr net debt

Price band: Rs. 107-113 per share

M cap: Rs. 583 cr, implying 25% dilution

IPO Date: Wed 24^th Jun to Mon 29^th Jun 2026, Listing Thu 2^nd Jul 2026

Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.

ITeS Company serving Government clients

CSM Technologies, established in 1998, is a Bhubaneshwar, Odisha based IT enabled services company, providing e-governance platforms and digital infrastructure support for mining and agriculture sectors. Approximately 80% of its tiny topline of Rs. 200 cr comes from government and PSUs, and 50% from top 5 customers. While order book of Rs. 358 cr as of 31.3.26 is healthy, it is typically spread across several years, as these are multi-year contracts.

Company’s revenue is also geographically concentrated in East India (Odisha, Bihar, Jharkhand), accounting for 80%.

Deteriorating Financials

During FY23 to FY25, revenue increased at 12% CAGR to Rs. 199 cr, but PAT contracted from Rs. 16 cr in FY22 to Rs. 14 cr in FY25. 9MFY26 revenue stood at Rs. 166 cr with PAT of Rs. 15 cr, implying 9% net margin and an EPS of Rs. 3.8.  

Company’s debt has been rising, now at Rs. 70 cr (net of Rs. 5 cr cash), leading to 0.8:1 net debt to equity ratio, on a net worth of Rs. 92 cr, as of 31.12.25. This has been mainly to fund rising receivables. Company’s receivables turnover ratio has declined sharply, halving from 5.6 times in FY24 to 2.6x during 9MFY26.

Expensive Pricing

M cap of Rs. 583 cr,leads to a PE multiple of 22x, based on an annualized 9MFY26 EPS of Rs. 3.8. This is extremely high for the company’s size (just Rs. 200 cr topline in 27 years of business), single-digit net margins and likely single-digit RoE going forward.

Although not comparable, even as India’s most valued software company TCS is ruling at a PE multiple of 15x.