Virtual Galaxy Infotech Ltd – A Promising Tech Debut with ₹93.29 Cr Issue
Latest IPO in India: Virtual Galaxy Infotech Ltd has launched its Initial Public Offering (IPO), aiming to raise ₹93.29 crore through a fresh issue of 65.70 lakh equity shares. This IPO is garnering attention for its potential in the fintech sector.
Company Overview
Founded in 1997 and headquartered in Nagpur, Maharashtra, Virtual Galaxy Infotech Ltd specializes in IT services and consulting. The company offers a range of software products and solutions across sectors such as:
- Banking & Finance
- Government
- Cloud Computing
- Enterprise Resource Planning (ERP)
- Big Data
- Internet of Things (IoT)
- System Integration
Their flagship product, E-Banker, serves banks, societies, and NBFCs, available both on-premises and as a SaaS model.
IPO Timeline
- IPO Opening Date: May 9, 2025
- IPO Closing Date: May 14, 2025
- Allotment Finalization: May 15, 2025
- Refund Initiation: May 16, 2025
- Share Credit to Demat Accounts: May 16, 2025
- Listing Date: May 19, 2025 (NSE SME Platform)
Price Band
The IPO price band is set between ₹135 and ₹142 per equity share. Retail investors can apply for a minimum of 1,000 shares, amounting to ₹1,35,000.
Lot Size
- Lot Size: 1,000 shares
- Minimum Investment: ₹1,35,000
- HNIs: Minimum of 2 lots (2,000 shares) amounting to ₹2,70,000
Key Dates
- UPI Mandate Deadline: May 14, 2025 (5 PM)
- Mandate End Date: May 29, 2025
- Anchor Lock-in Ends: 50% on June 14, 2025, remaining 50% on August 13, 2025
Financials
- FY24 Revenue: ₹63.58 crore (up from ₹59.76 crore in FY23)
- FY24 Profit After Tax (PAT): ₹16.45 crore (up from ₹0.72 crore in FY23)
Strengths
- Diverse Product Portfolio across BFSI and Government sectors
- Serves over 350 cooperative banks and NBFCs
- Experienced Leadership Team
- Adoption of hybrid SaaS and cloud solutions
Risks
- High market competition in IT services
- Revenue concentration from a few clients
- Regulatory risks in financial and IT sectors
- Dependence on skilled technical manpower
IPO Anchor Investors Details
| Investor Category | Shares Offered | Percentage (%) |
|---|---|---|
| Anchor Investors | 18,40,000 | 28.01% |
| Qualified Institutional Buyers (QIBs) | 12,44,000 | 18.93% |
| Non-Institutional Investors (NIIs) | 9,50,000 | 14.46% |
| Retail Individual Investors (RIIs) | 22,00,000 | 33.49% |
| Total | 65,70,000 | 100% |
IPO Promoter Holding Details
| Shareholding Category | Pre-Issue Holding (%) | Post-Issue Holding (%) |
|---|---|---|
| Promoters | 100% | 73.57% |
| Public | 0% | 26.43% |
IPO Grey Market Premium (GMP)
| Date | GMP (₹) | Estimated Listing Price (₹) | Premium over Upper Band (%) |
|---|---|---|---|
| May 9, 2025 | 6 | 148 | 4.23% |
| May 10, 2025 | 8 | 150 | 5.63% |
| May 11, 2025 | 15 | 157 | 10.56% |
Note: GMP data is indicative and may fluctuate based on demand and sentiment.
Final Thoughts
Virtual Galaxy Infotech Ltd’s IPO stands out as a solid opportunity for investors looking to diversify into the IT sector, particularly in financial tech. With robust financials, a proven client base, and innovative product offerings, the company is well-positioned for growth. However, due diligence and awareness of associated risks are crucial before investing.