Virtual Galaxy Infotech Limited, a SaaS-focused technology company, is set to make a strong debut with its IPO subscription crossing 70 times on the final day, signaling robust investor interest. The company specializes in core banking software solutions, IT services, ERP implementation, and customized software development primarily serving the BFSI, ERP, and E-Governance sectors.

IPO Details

Virtual Galaxy Infotech IPO is a Book Built Issue with a total size of ₹93.29 Crores, consisting solely of a fresh issue of 65.70 lakh shares. The subscription window was open from May 9 to May 14, 2025. The shares are priced in the band of ₹135 to ₹142, with a lot size of 1,000 shares. The minimum investment for retail investors is ₹1,42,000, while HNIs must invest at least 2 lots (₹2,84,000).

The IPO will be listed on the NSE SME platform, with allotment expected on or about 15 May 2025 and listing tentatively on 19 May 2025.

Grey Market Premium (GMP) and Listing Gains

The Grey Market Premium for Virtual Galaxy Infotech IPO is reported at ₹21, reflecting a 14.78% premium over the IPO price of ₹142. Although GMP is an unofficial indicator and not a guaranteed reflection of listing price, it provides an insight into positive market sentiment. The expected listing price, factoring GMP, is approximately ₹163 per share.

Subscription Status

As of the final subscription day on 14 May 2025 at 12:25 PM, the IPO had been subscribed 70.19 times, showcasing strong investor appetite. This surge in subscription is a positive sign for potential listing gains.

Anchor Investors

Virtual Galaxy Infotech successfully raised ₹26.12 Crores from anchor investors at the upper price band of ₹142. A total of 18.40 lakh equity shares were allocated to anchor investors from the QIB portion, reflecting institutional confidence.

Objectives of the Issue

The net proceeds from the IPO will be primarily used for:

• ₹34.27 Crores for capital expenditure to set up an additional development facility in Nagpur, Maharashtra.

• ₹3.0 Crores for repayment/prepayment of borrowings.

• ₹5.05 Crores for procuring GPUs, servers, and storage systems for data centre enhancement.

• ₹18.9 Crores to fund enhancement, maintenance, and upgrading of existing software products.

• ₹14.06 Crores for business development and marketing activities.

• Remaining for general corporate purposes.

Company Financial Performance and Valuation

Virtual Galaxy Infotech has shown strong growth with revenue increasing from ₹43.44 Crores in FY22 to ₹101.37 Crores in the period ended Dec 31, 2024. EBITDA and profit after tax have also shown impressive growth, indicating improving operational efficiency and profitability.

Key metrics include:

• Pre-issue EPS of ₹10.06 and post-issue EPS of ₹6.65 for FY24.

• Pre-issue P/E of 14.17x and post-issue P/E of 21.35x against an industry average P/E of 142x.

• ROCE of 31.68%, ROE of 53.52%, and RoNW of 39.95%, showcasing strong return ratios.

These valuation multiples suggest the IPO is reasonably priced with potential for listing gains, supported by the positive GMP trend.

How to Check Virtual Galaxy Infotech IPO Allotment Status

• Visit the registrar’s IPO allotment status page.

• Select "Virtual Galaxy Infotech Limited" from the dropdown.

• Enter your application number, PAN, or DP Client ID.

• Submit details to view allotment status.

This quick process enables investors to confirm their allotment and plan accordingly.

Conclusion

Virtual Galaxy Infotech Limited's IPO has garnered strong market interest with oversubscription and promising GMP trends indicating healthy listing gains. With a robust business model, experienced leadership, and solid financials, this IPO presents an attractive opportunity for investors willing to take calculated risks.

Risk-taking investors looking for listing gains may consider applying for Virtual Galaxy Infotech IPO while keeping in mind market risks and investment horizons.

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, Integrity Infrabuild Developers.

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