Virtual Galaxy Infotech, a leading SaaS-focused company, is offering an IPO of ₹ 93.29 Crores, entirely through a fresh issue of 65.70 lakh shares. The company specializes in core banking software solutions, ERP implementation, and IT services catering to the BFSI, ERP, and E-Governance sectors. The IPO opens on May 9, 2025, and closes on May 14, 2025, with an expected listing date on May 19, 2025. Investors can bid for shares in the price band of ₹ 135 to ₹ 142 per share. The market capitalization at the upper price band is ₹ 353.13 Crores.

Virtual Galaxy Infotech IPO Key Details
The IPO lot size is 1,000 shares, which means a minimum investment of ₹ 1,42,000 for retail investors. High-Net-Worth Individuals (HNIs) must invest a minimum of ₹ 2,84,000, representing 2 lots. The company has appointed Smart Horizon Capital Advisors Private Limited as the book running lead manager and Maashitla Securities Private Limited as the registrar. Alacrity Securities Limited acts as the market maker for the IPO.

Virtual Galaxy Infotech IPO Grey Market Premium (GMP)
The Grey Market Premium (GMP) for Virtual Galaxy Infotech's IPO is currently ₹ 21, indicating an expected listing gain of around 14.78%. However, it's important to note that GMP is unregulated and speculative, with actual prices determined post-listing.

Subscription Dates and Allotment
The IPO subscription window opens on May 9, 2025, and closes on May 14, 2025. The allotment process will be finalized by May 15, 2025. Investors can check their allotment status online by entering their application number, PAN, or DP Client ID on the registrar’s website.

Objectives of the IPO
The net proceeds from the IPO will be utilized for several key purposes, including:

1. Setting up a new development facility in Nagpur, Maharashtra (₹ 34.27 Crores).

2. Repayment of borrowings (₹ 3 Crores).

3. Investment in procuring high-end GPU, servers, and storage for the Data Centre (₹ 5.05 Crores).

4. Enhancing, maintaining, and upgrading existing products (₹ 18.90 Crores).

5. Funding business development and marketing activities (₹ 14.06 Crores).

6. General corporate purposes.

Virtual Galaxy Infotech IPO Financial Overview
The company’s financials show significant growth. As of December 31, 2024, Virtual Galaxy Infotech posted revenues of ₹ 10,137.06 Lakh with a profit after tax of ₹ 2,741.51 Lakh. The company has demonstrated a strong profit trajectory from previous fiscal years, indicating its stable growth. The company's key performance metrics include a pre-issue EPS of ₹ 10.06, a post-issue EPS of ₹ 6.65, and a pre-issue P/E ratio of 14.17x, which is lower than the industry average of 142x, making the IPO reasonably priced.

Virtual Galaxy Infotech IPO Review and Investment Recommendation
Given Virtual Galaxy Infotech’s consistent financial growth and its strategic focus on the BFSI, ERP, and E-Governance sectors, the IPO appears to be a promising investment opportunity. The company’s financial metrics are strong, with a solid return on equity (ROE) of 53.52% for FY24, and a robust return on capital employed (ROCE) of 31.68%. With the IPO’s reasonable pricing and growth potential, it presents a good opportunity for risky investors looking for listing gains.

Conclusion
With a steady financial performance and clear utilization of funds, Virtual Galaxy Infotech offers potential for growth and capital appreciation. Investors looking for a SaaS and IT-focused company in the BFSI and ERP sectors can consider applying for the IPO, especially for potential listing gains. However, it’s important to keep in mind that IPO investments carry inherent risks, particularly in the current market environment.

The Upcoming IPOs in this week and coming weeks are Integrity Belrise Industries,Infrabuild Developers, Virtual Galaxy Infotech, Accretion Pharmaceuticals, Wagons Learning.

The Closed IPOs are Srigee DLM, Manoj Jewellers.

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