CSM Technologies IPO

About CSM Technologies IPO

The public issue of the CSM Technologies IPO, a mainboard IPO to be listed on NSE and BSE, opens on June 24, 2026 and closes on June 29, 2026. The allotment of shares will take place on June 30, 2026. The credit of shares to the demat account will take place on July 1, 2026. The initiation of refunds will also take place on July 1, 2026. The listing of shares will take place on July 2, 2026.

The offer consists of a fresh issue only. The fresh issue will include 1,29,01,000 shares (aggregating up to ₹145.78 crores). There is no offer for sale portion in the IPO. The total number of shares in the IPO is 1,29,01,000 aggregating to ₹145.78 crores. All values are assuming price discovery at the upper band of ₹113 per share.

CSM Technologies is a book-built IPO with the IPO price band set between ₹107 and ₹113 per share. The lot size for an application is 132 shares. The minimum amount of investment required by a retail investor is ₹14,916 (132 shares based on upper band price of ₹113 per share). The minimum lot size investment for HNI is ₹2,08,824. Incorporated in 1998, CSM Technologies is into the business of providing IT solutions for the government and also for private clients. Its focus areas are GovTech and digital transformation with solutions offered across an array of sectors like mining, agriculture, education, healthcare, tourism and public services. It has built long-term partnerships with governments in setting up e-governance platforms and digital infrastructure. It also provides consulting and advisory services to governments and businesses. Apart from a strong India franchise, it also has presence across 13 other countries; largely across Africa and North America.

Objectives of CSM Technologies IPO

The company proposes to utilise the IPO proceeds for:

• Funding working capital requirements of the company
  
• Prepayment / Repayment of loans taken by the company
  
• Inorganic growth through acquisitions
  
• General Corporate Expenses
  

Industry Outlook

Digital transformation is triggered by several factors like secure internet servers, quality of bandwidth, number of users on the internet, AI preparedness etc. India has scored on all these counts and considering its massive population, digital outreach has been the best solution to most public service challenges. The Indian government’s spending on digital infrastructure has more than doubled between FY21 and FY26. However, the government digital spending in India is 0.03% of nominal GDP; compared to 4.3% in Africa, 8.3% in the Middle East, and 6.3% in North American. That is the big opportunity for India to tap in the digital infrastructure and e-governance space.

The size of the Indian IT market size as a percentage of global market size has been under 6% since 2020, but is expected to touch 6.3% by calendar year 2030. However, most Indian IT companies continue to focus on the global exports accounting for 78% of the Indian IT/ITES business and only 22% coming from within India. Indian IT spending in the last few years has shifted towards Enterprise IT, Government IT, Cloud, Artificial Intelligence, Cybersecurity, and Analytics. Aadhar, Direct Benefits Transfer (DBT), UPI, Health Registry etc are some of the specific projects in Government, which have been extremely successful and have also been able to make a difference to service standards.

About CSM Technologies

CSM Technologies specializes in GovTech and digital infrastructure solutions to the government and to the private sector. Its role has been to streamline operations, improve decisions based on data, facilitating citizen-centric services etc. It has presence in 14 countries, predominantly in Africa and North America, apart from India. Some of its marquee projects include Digital Mineral Mining System, Paddy Analytics System, School Mapping System in Ethiopia, Timber Tracing system in Gabon, Aadhar Data Vault System in the state of Bihar, Integrated Tea Trading Services in Kenya etc. Out of its total order book for FY25, government orders were 57.2% while private sector orders are 42.8%. Mining and public services orders are predominant in government orders while Agriculture and Allied Services predominate in private sector. Top 10 customers accounted for 77.6% of revenues in FY25. In FY25, existing customers gave the company 95% of revenues with balance from new clients.

Strengths of CSM Technologies

• Deep sectoral expertise across a range of industry verticals.
  
• Proprietary technology also creates IP value for the company.
  
• Huge geographical footprint across India, Africa, and North America.
  
• Strong presence in a high-entry barrier and trust-based industry.
  
• Experienced promoters with track record of profitable performance.
  

Risks of CSM Technologies

• Government tenders still account for bulk of the business.
  
• Hence, the competition risk is always there in the bidding process.
  
• The state of Odisha accounts for 60-70% of the total revenues of the company.
  
• Top 10 customers account for 78-80% of the total revenue book of the company.
  
• Since technology is proprietary, IP protection poses a major risk for the company.
  
• There is a major reliance on the top 10 suppliers, making it a concentration risk upstream.
  
• Government contracts are subject to stringent conditions and penalties for delays.
  
• Auditors have raised concerns about the ability to continue as going concern.
  
• Contingent liabilities arising from guarantees on behalf of subsidiaries.
  

Anchor Investor Bidding Date: June 23, 2026

IPO Registrar
KFIN Technologies Ltd (KFINTECH)
Email: csmtechnologies.ipo@kfintech.com
Phone: 04067162222, 04079611000

Book Running Lead Manager
Keynote Financial Services Ltd

CSM Technologies Contact Details
Plot No, E/56, Infocity, 1, Chandrasekharpur, Dist.: Khurda, Khordha, Bhubaneswar, 751 024, Odisha, India
Email: secretarial@csm.tech
Phone: 06746635900

Business Model

The business model of CSM Technologies is based on offering digital infrastructure and GovTech solutions to the government departments as well as to private sector. Its model is to grow its business in sync with the growth of digital infrastructure in India and the growth in digital spending as a percentage of nominal GDP, which is still way below global benchmarks.

Company Growth Trajectory

Between FY23 and FY25, the total operating revenues of the company increased from ₹160.44 crore to ₹199.24 crore. During the same period, the EBITDA improved marginally from ₹27.87 crore to ₹29.27 crore. However, the EBITDA margins fell from 17.37% in FY23 to 14.69% in FY25.

In terms of PAT, the company saw lower profits of ₹14.09 crore in FY25 compared to ₹15.82 crore in FY23. As a result, the PAT margins fell from 9.80% to 7.02% between these two periods. The share of India business fell from 96.3% to 87.4% between FY23 and FY25, while foreign revenue share rose.

Market Position

The company has positioned its model on the GovTech and Digital Infrastructure space. It has a 3.0 certification by CMMI. Existing customers give about 95% of the business as of FY25 with new customers contributing 5%.

In terms of segmental revenues in FY25, Government & Public Services accounted for 25.8% and mining & allied activities for 24.7%. Among other major verticals, agriculture & allied services accounted for 16.1%, Education for 14.8%, and Industry & Trade Facilitation for 11.1%.

How to Apply for CSM Technologies IPO?

• Step 1: Log in to your Kotak Neo Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
  
• Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.
  
• Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
  
• Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
  
• Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.