Virtual Galaxy Infotech Limited is a SaaS-focused technology company specializing in core banking software solutions, IT services, ERP implementation, and customized software for the BFSI, ERP, and E-Governance sectors. The company provides a full suite of services from software development and customization to installation, implementation, and post-implementation support, ensuring smooth operation and maintenance for clients.

The company recently launched a Book Built Issue IPO amounting to ₹ 93.29 Crores, entirely consisting of a fresh issue of 65.70 lakh shares. The IPO subscription opened on May 9, 2025, and closed on May 14, 2025. The shares are set to be listed on the NSE SME platform with an expected allotment date on May 15, 2025, and tentative listing on or about May 19, 2025.

The IPO price band is fixed between ₹ 135 and ₹ 142 per equity share, with the market capitalization at the upper band price pegged at ₹ 353.13 Crores. The IPO lot size is 1,000 shares, requiring a minimum investment of ₹ 1,42,000 for retail investors and ₹ 2,84,000 for High-Net-Worth Individuals (HNIs).

The IPO is managed by Smart Horizon Capital Advisors Private Limited as the book running lead manager. The registrar for the issue is Maashitla Securities Private Limited, and Alacrity Securities Limited acts as the market maker.

Financially, the company has demonstrated consistent growth with revenues reaching ₹ 10,137.06 Lakh for the fiscal year ending December 31, 2024, up from ₹ 4,343.74 Lakh in 2022. EBITDA also increased to ₹ 4,562.80 Lakh in 2024, reflecting strong operational efficiency. Profit after tax surged to ₹ 2,741.51 Lakh in 2024, marking a significant rise compared to ₹ 40.22 Lakh in 2022. These figures underline a robust upward trajectory in both top-line and bottom-line growth.

The company's key financial ratios include a pre-issue EPS of ₹ 10.06 and a post-issue EPS of ₹ 6.65 for FY24. The pre-issue P/E ratio stands at 14.17x, while the post-issue P/E is 21.35x, both below the industry average of 142x, suggesting the IPO is fairly priced. Return on Capital Employed (ROCE) is at 31.68%, and Return on Equity (ROE) is 53.52%, signaling efficient capital management.

The Grey Market Premium (GMP) is ₹ 21, indicating a potential listing gain of approximately 14.78%. This premium reflects strong market demand and positive sentiment ahead of listing, but since GMP is an unofficial metric, investors are advised to approach with caution.

The net proceeds from the IPO will be used for expanding the company’s development facility in Nagpur, repaying existing borrowings, investing in GPU and server infrastructure, enhancing existing products through manpower hiring, funding marketing and business development, and general corporate purposes.

The Upcoming IPOs in this week and coming weeks are Victory Electric Vehicles International, Borana Weaves, Dar Credit and Capital,Belrise Industries, Wagons Learning.

The Current active IPO are Accretion Pharmaceuticals.

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