CSM Technologies IPO opens June 24 to fund working capital
CSM Technologies Limited opens its ₹78.63 crore IPO on June 24, 2026, to fund working capital and repay debt. The Bhubaneswar-based e-governance IT firm reports FY25 revenue of ₹199.24 crore and PAT of ₹14.09 crore.
*this image is generated using AI for illustrative purposes only.
CSM Technologies Limited is set to open its initial public offering (IPO) on June 24, 2026, seeking to raise ₹78.63 crore through a fresh issue to support its working capital needs and reduce debt. The Bhubaneswar-based IT solutions provider, specializing in e-governance platforms, has scheduled the issue to close on June 29, with allotment expected on June 30 and listing on July 2. The offering comes as the company navigates a working capital-intensive business model and seeks to strengthen its balance sheet.
Financial Performance
The company has demonstrated consistent revenue growth over the past two fiscal years, with revenue from operations rising from ₹160.44 crore in FY2023 to ₹199.24 crore in FY2025. However, growth decelerated significantly in FY2025, increasing by only 1.29% compared to the 22.60% growth recorded in the previous year. Profitability also experienced fluctuations, with Profit After Tax (PAT) declining from ₹15.82 crore in FY2023 to ₹12.55 crore in FY2024 before recovering to ₹14.09 crore in FY2025.
| Metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
| Revenue from Operations | ₹160.44 Cr | ₹196.71 Cr | ₹199.24 Cr |
| Total Revenue | ₹161.50 Cr | ₹198.65 Cr | ₹200.63 Cr |
| Total Expenses | ₹138.88 Cr | ₹180.83 Cr | ₹180.19 Cr |
| Profit After Tax (PAT) | ₹15.82 Cr | ₹12.55 Cr | ₹14.09 Cr |
| PAT Margin | 9.80% | 6.32% | 7.07% |
Objects of the Issue
The net proceeds from the fresh issue will be allocated towards specific corporate objectives. The largest tranche, amounting to ₹56.00 crore, is designated for funding working capital requirements, which represented 60.98% of revenue from operations for the nine months ended December 31, 2025. Additionally, ₹22.63 crore will be used for the prepayment or repayment of outstanding borrowings to improve the company's debt-equity ratio. A portion of the funds is also earmarked for inorganic growth and general corporate purposes, though the specific amount for this tranche was not disclosed in the Draft Red Herring Prospectus (DRHP).
| Purpose | Amount (₹ Cr) |
|---|---|
| Funding Working Capital Requirements | 56.00 |
| Repayment of Borrowings | 22.63 |
| Total Identified Proceeds | 78.63 |
Business Profile and Risks
CSM Technologies operates across ten verticals, including mining, governance, agriculture, and healthcare, with a presence in 14 countries. The company holds CMMI Level-5 and SOC 2 Type II certifications. Promoter Priyadarshi Pany holds 93.60% of the pre-issue equity share capital. Despite its operational footprint, the company faces material risks, including heavy dependence on government tenders, which account for 63.45%–77.13% of revenue, and geographic concentration in eastern India, which contributes 62.56%–83.95% of revenue. Statutory auditors have also expressed substantial doubt about the ability of certain subsidiaries to continue as a going concern due to negative net worth and accumulated losses.
How will the company address the significant revenue deceleration observed in FY2025 post-IPO?
What strategies are planned to reduce the heavy dependency on government tenders and diversify the client base?
Will the capital raised be sufficient to resolve the going concern uncertainties expressed by auditors regarding the subsidiaries?
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