CSM Technologies IPO Day 1: GMP Turns Positive, But Is This GovTech IPO Worth Your Money?

One major mainboard issue opened for subscription on Wednesday in the highly active IPO market. CSM Technologies IPO opened for public bidding on June 24, aiming to raise Rs 145.78 crore through a fresh issue of shares.

While the company is not a household name among retail investors, it built a niche in India's GovTech and digital transformation sector, providing technology solutions for government departments for more than two decades.

CSM Technologies IPO Details

The CSM Technologies IPO is a book-built issue worth Rs 145.78 crore and consists entirely of a fresh issue of 1.29 crore equity shares. The public issue will remain open until June 29

The company has fixed the CSM Technologies IPO price band at Rs 107 to Rs 113 per share. Investors can bid for a minimum lot size of 132 shares, requiring a minimum investment of Rs 14,916 at the upper end of the price band.

The IPO allotment is expected to be finalized on June 30, while the shares are scheduled to debut on both the NSE and BSE on July 2nd

CSM Technologies IPO Subscription Status Today

The CSM Technologies IPO subscription status got off to a slow start on Day 1. As of 11:19 AM on June 24, the IPO was subscribed 0.13 times overall.

The retail investor category was subscribed 0.18 times, while the Non-Institutional Investor portion received 0.30 times subscription. The Qualified Institutional Buyers category, excluding anchor investors, had not yet received bids and remained subscribed 0.00 times.

CSM Technologies IPO GMP Today

According to the latest grey market data by Investorgain website, the CSM Technologies IPO GMP today stands at Rs 4 per share.
Based on the upper price band of Rs 113, the estimated listing price is around Rs 117 per share, indicating a potential listing gain of approximately 3.54%.

CSM Technologies Raises Rs 20 Crore From Anchor Investors

Ahead of the public issue, the company successfully raised Rs 20 crore from anchor investors on June 23.

Should You Subscribe To CSM Technologies IPO?

The CSM Technologies IPO is giving investors an opportunity to participate in India's GovTech sector.

Swastika Investmart Ltd in it IPO Note gave a Neutral rating to the IPO.

The research firm said, "At 31x P/E, the IPO is priced at a significant premium to listed peers despite its relatively smaller scale. While revenue has grown steadily, profit after tax has remained volatile, limiting earnings visibility. EBITDA margins have recovered in FY25, but are yet to reach FY23 levels, indicating room for further operational improvement.The IPO price is close to the company's book value (NAV), which offers some valuation support. However, the company's revenue is much smaller than its listed peers. We assign an NEUTRAL rating, Aggressive investors may park moderate funds for long term in this dividend paying company."

That said, the current GMP of Rs 4 hints at modest listing gains compared to some recent IPOs. Investors who are looking for only listing gains should monitor subscription trends before making a decision.

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