CSM Technologies

CSM Technologies is coming out with a 100% book building; initial public offering (IPO) of 1,29,01,000 shares of face value Rs 10 each in a price band Rs 107-113 per equity share.
Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
The issue will open for subscription on June 24, 2026 and will close on June 29, 2026.
The shares will be listed on BSE as well as NSE.
The face value of the share is Rs 10 and is priced 10.70 times of its face value on the lower side and 11.30 times on the higher side.
Book running lead manager to the issue is Keynote Financial Services.
Compliance officer for the issue is Shweta Janardhan Sharma.

Profile of the company

CSM Technologies is amongst the few Information Technology (IT) solutions companies, who have delivered first of its kind projects for government as well as for the private sector. It also specialises in providing GovTech solutions and digital transformation services. It provides 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. Incorporated in 1998, it has twenty-seven years of experience in designing, developing, and implementing e-governance platforms and digital infrastructure and operate as a long-term digital transformation partner to government agencies.

These solutions are aimed at streamlining operations, improving data-driven decision-making, and facilitating citizencentric services. It also offers consulting and advisory services and provide self-service technologies that enable government organisations and corporate clients to migrate, automate, and manage customer-facing business processes through self-service channels. It integrates sectoral knowledge, scalable technology platforms, and analytics to support governments in adopting data driven processes and improving service delivery. Its experience across multiple sectors enables to contribute to the implementation of technology solutions for public service initiatives.

Its diversified customer base includes customers from the government sector (government institutions/departments), and enterprises. It has a diverse client base, with a primary focus on government entities and development organizations across India, Africa, and the United States. It works extensively with central and state government departments, public sector undertakings, and agencies across sectors such as infrastructure, and public administration in India and abroad. In addition, it collaborates with donor and development agencies active in key areas like rural development, healthcare, and education, supporting them in the execution and management of critical social impact initiatives and development programs.

Proceed is being used for:

Funding working capital requirements of the company
Prepayment or repayment of all or a portion of certain outstanding borrowings availed by the company
Achieving inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes

Industry overview

The Indian IT sector is at the forefront of adopting Industry 4.0, utilizing cutting-edge technologies to enhance innovation and efficiency. By incorporating AI, IoT, big data analytics, and robotics, Indian firms are revolutionizing conventional processes into intelligent, automated systems. Programs like ‘Digital India’ and ‘Make in India’ are also driving this transformation, helping Indian businesses secure a strong position in global markets. Industry 4.0, also known as the Fourth Industrial Revolution (4IR), marks a transformative phase in digitization. It is characterized by disruptive advancements in data and connectivity, sophisticated analytics, seamless human-machine interaction, and considerable progress in robotics.

India's IT market has demonstrated a steady increase in its share of the global IT market over the years, rising from 5.0% in CY20 and CY21 to a projected 6.3% by CY30P. While the share remained stagnant in the initial two years, there was a noticeable increase beginning in CY22, reaching 5.2%, and further climbing to 5.9% in CY23. The projected rise to 6.3% by CY30P indicates a positive long-term outlook.

In India, the government has launched various schemes to promote the adoption of IT solutions across key industries. These initiatives focus on improving infrastructure, promoting digital literacy, fostering economic growth, and improving efficiency in government services. IT is playing an integral role in driving India's development in sectors such as agriculture, healthcare, education, tourism, mining, governance and many more thereby contributing to national growth.

Pros and strengths

Deep sectoral expertise across a diversified spectrum of industries: The company is amongst the few IT solutions companies, who have delivered first of its kind projects for government as well as for the private sector. It has developed deep sectoral expertise in delivering tailored digital solutions for the public sector, with a focus on enabling large-scale digital transformation. Its business operates through ten verticals that function as distinct operating segments: Mining & Allied Services, Governance & Public Services, Agriculture & Allied Services, Industry & Trade Facilitation, Education, Healthcare, and Tourism. It has built focused capabilities within each vertical to address specific needs, allowing it to serve a wide range of clients. It offers end-to-end technology services, from consulting and development to operations and maintenance, using technologies that includes Artificial Intelligence (AI), Internet of Things (IoT), cloud, and data analytics. Its deep sectoral expertise and a diversified portfolio of IT offerings, has enabled it to deliver scalable and outcome-oriented digital solutions.

Extensive geographic footprint with scalable operations across key markets: It has established a geographically diversified presence across India and select international markets, enabling it to serve a broad and varied client base while de-risking concentration across regions. In India, it operates across multiple states including Odisha, Bihar, New Delhi, Uttar Pradesh and Jharkhand. Internationally, it has successfully executed projects in several countries across Africa, including Ethiopia, The Gambia, Gabon, Kenya, and Rwanda, and have recently expanded into North America, with a presence in Canada and in certain parts of the USA.

Established presence in a high-entry-barrier industry: The IT-ITeS (Information Technology enabled services) market is characterised by significant entry barriers owing to factors such as proven operational track record, meeting eligibility criteria requirements, complex domain knowledge and experienced talent pool. These factors make it challenging for new entrants to compete effectively in this space. These barriers are driven by factors such as long procurement and qualification cycles, requirement for prior execution track record, deep domain expertise, client trust built over time, and the need for sustained investment in technology, compliance, and talent. Moreover, engagements in sectors such as e-governance and regulated industries often involve complex integration requirements and high switching costs, further reducing the likelihood of client migration to new service providers.

Track record of healthy financial performance: The company has established a track-record of strong and consistent financial performance. The projects it undertakes ensure visibility of revenues and it generated Rs 16,552.36 lakh, Rs 19,924.42 lakh, Rs 19,671.05 lakh, and Rs 16,043.87 lakh, as revenue from operations in the nine months period ended December 31, 2025 and Fiscals 2025, 2024 and 2023, respectively. Its EBITDA for the nine months period ended December 31, 2025 and Fiscals 2025, 2024, and 2023 was Rs 3,006.66 lakh, Rs 2,927.00 lakh, Rs 2,370.94 lakh, and Rs 2,787.23 lakhs, respectively. Its Net Working Capital days stood at 85 days, 78 days, 53 days, and 64 days in the nine months period ended December 31, 2025 and in the Fiscals 2025, 2024, and 2023, respectively. Its focus on operational and functional excellence has contributed to its track record of healthy financial performance.

Risks and concerns

Significant reliance on Government contracts and tenders: The company works extensively with central and state government departments, public sector undertakings, and agencies across sectors such as mining, infrastructure, and public administration in India and abroad. Its business is heavily dependent on tenders from government authorities. During the nine months period ended December 31, 2025 and the Fiscals 2025, 2024, and 2023, it derived 63.45%, 74.15%, 69.17%, and 77.13% respectively, of its revenue from operations from the tenders released by government entities including central or state governmental organizations. Any delays or a lack of tenders from government entities, along with adverse changes in government policies, could materially impact its business through contract foreclosures, terminations, restructurings, or renegotiations, affecting its operations and financial performance.

Dependence on key suppliers for critical IT infrastructure: Its suppliers provided it with a broad range of essential hardware and software products and services. This included fundamental IT infrastructure, such as servers, storage solutions, and antivirus software. It also relied on these suppliers for various software services, general IT hardware and software solutions, and comprehensive enterprise-level support. For the nine months period ended December 31, 2025 and Fiscals 2025, 2024, and 2023, the cost of supplies from its top ten suppliers represented 26.69%, 24.00%, 34.80%, and 32.96%, of its Revenue from Operations, respectively. it relies on its suppliers for various critical aspects of its information technology infrastructure. If any of its top 10 suppliers ceased supplying products/services to the company and it was unable to find a supplier to replace it, it could have an adverse effect on its business, financial condition, results of operations, and cash flows.

Heavy revenue dependence on Odisha: The company’s operations are geographically concentrated in the eastern region of India, particularly in the State of Odisha. During the nine months period ended December 31, 2025 and in Fiscals 2025, 2024 and 2023, it derived Rs 10,354.78 lakh, Rs14,539.75 lakh, Rs15,099.45 lakh, and Rs13,469.85 lakh aggregating to 62.56%, 72.97%, 76.76% and 83.95%, respectively of its total revenue from operations from the eastern Indian State of Odisha. Any adverse developments in these regions could materially affect its business and growth prospects.

Dependence on third-party OEMs for hardware and server infrastructure: The company relies on third-party Original Equipment Manufacturers (OEMs) for the supply of critical hardware components and server infrastructure required for the development, deployment, and maintenance of its technology solutions and project executions. Its ability to procure these components in a timely and cost-effective manner is essential to meet project deadlines and client expectations. Any increase in costs from OEMs due to factors such as supply chain disruptions, raw material price volatility, changes in trade policies, or currency fluctuations could lead to cost overruns, thereby adversely impacting project margins and overall financial performance.

Outlook

CSM Technologies provides a wide range of Information Technology services relating to software development, software licensing & designing with a minimal up-gradation which looks into the business need, end-to-end business solutions, creation of web enabled applications, web portals, corporate-wise process integration, business critical application, data warehousing, system integration, turnkey projects, e-Governance, community development, system integration technology and process solutions and other related services. On the concern side, the majority of its Order Book and its revenues are from industry segments such as government and public services, mining & allied services and agriculture and allied services sector, which contributed to 21.91%, 27.96% and 30.09% of its Order Book and 31.52%, 24.65% and 14.56% of its revenue from operations as of December 31, 2025, respectively. Significant social, political, or economic changes in these sectors could adversely affect its business, results of operations, financial condition, and cash flows.

The issue has been offering 1,29,01,000 shares in a price band of Rs 107-113 per equity share. The aggregate size of the offer is around Rs 138.04 crore to Rs 145.78 crore based on lower and upper price band respectively. Minimum application is to be made for 132 shares and in multiples thereon, thereafter. On performance front, its total income increased by 1.00% to Rs 20,062.73 lakh for Fiscal 2025 from Rs 19,865.05 lakh for Fiscal 2024. The restated profit after tax for Fiscal 2025 was stood at Rs 1,408.65 lakh, as compared to the restated profit after tax of Rs 1,254.93 lakh for Fiscal 2024.

Meanwhile, the company has aligned its business operations with key central and state government initiatives aimed at fostering growth in the information technology (IT) and digital services sector. Its ability to identify and capitalize on these policy-driven opportunities has enabled it to optimise costs, access world-class infrastructure, and expand strategically across geographies. This approach has also contributed to strengthening its competitiveness, operational resilience, and long-term growth. Over the years, it has successfully executed several digital infrastructure and governance projects under flagship government programmes. These include incubation support, infrastructure subsidies, fiscal incentives, and sustain ability linked benefits, which have helped it scales its presence efficiently.

CSM Technologies Ltd.