CSM Technologies Ltd made a flat stock market debut on Thursday, listing at ₹113 per share on both the NSE and BSE, matching its IPO offer price. Within minutes of listing, the stock declined 5 per cent to hit its lower circuit of ₹107.35 on the exchanges. The muted listing came after the company’s initial public offering was subscribed 1.36 times.
Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, noted that the company has shown steady revenue growth, earnings remain volatile, and the IPO was priced at a premium valuation of 31x P/E compared to peers. “We maintain a neutral view, with aggressive investors considering it for the long term. A stop loss at ₹105 is recommended,” Nyati added.
The ₹145.78-crore initial public offering received bids for 1,51,27,068 shares against 1,11,30,880 shares on offer, translating into an overall subscription of 1.36 times.
The retail investors’ portion was subscribed 1.62 times, while the non-institutional investors’ category was subscribed 1.54 times. The quota reserved for qualified institutional buyers (QIBs) received subscriptions of 1.02 times.
Ahead of the IPO, CSM Technologies raised ₹20 crore from anchor investors.
The IPO was priced in the band of ₹107-113 per share.
The company said the proceeds from the fresh issue will be used to fund working capital requirements, repay debt and support inorganic growth initiatives.