Virtual Galaxy Infotech IPO
- IPO Date09 May, 2025 to 14 May, 2025
- Listing Date19 May, 2025
- Face Value₹10 per share
- Issue Price₹135 to ₹142 per share
- Lot Size1000 Shares
- Minimum Investment₹1,42,000
- Listing AtNSE SME
- Total Issue Size65,70,000 Shares
(aggregating up to ₹93.29 Cr) - Fresh Issue65,70,000 Shares
(aggregating up to ₹93.29 Cr)
- Offer for Sale-
- Issue TypeBookbuilding IPO
- Share holding pre issue1,82,98,635
- Shareholding post issue2,48,68,635
IPO Dates
Closing Date
14 May, 2025
Initiation of Refunds
16 May, 2025
Listing Date
19 May, 2025
09 May, 2025
Opening Date
15 May, 2025
Basis of Allotment
16 May, 2025
Credit of Shares
Virtual Galaxy Infotech Lot Size
Investors can bid for a minimum of 1000 shares and in multiples thereof. The following table depicts the minimum and maximum investment by Retail Investors and HNI in terms of shares and amount.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 1000 | ₹1,42,000 |
| HNI (Min) | 2 | 2000 | ₹2,84,000 |
| Retail (Max) | 1 | 1000 | ₹1,42,000 |
Virtual Galaxy Infotech Promoter Holding
The promoters of the Company are Avinash Narayanrao Shende and Sachin Purushottam Pande.
| Pre Issue Share Holding | Post Issue Share Holding |
|---|---|
| 87.95% | - |
Virtual Galaxy Infotech COMPANY INFORMATION
Virtual Galaxy Infotech IPO is a bookbuilding of ₹93.29 crores. The issue is entirely a fresh issue of 65.70 lakh shares. Virtual Galaxy Infotech IPO bidding opened for subscription on May 9, 2025 and will close on May 14, 2025. The allotment for the Virtual Galaxy Infotech IPO is expected to be finalized on Thursday, May 15, 2025. Virtual Galaxy Infotech IPO will be list on NSE SME with a tentative listing date fixed as Monday, May 19, 2025. Virtual Galaxy Infotech IPO price band is set at ₹135 to ₹142 per share. The minimum lot size for an application is 1000. The minimum amount of investment required by retail investors is ₹1,35,000. But it is suggested to the investor to bid at the cutoff price to avoid the oversubscription senerio, which is about to ₹1,42,000. The minimum lot size investment for HNI is 2 lots (2,000 shares) amounting to ₹2,84,000. Smart Horizon Capital Advisors Private Limited is the book-running lead manager of the Virtual Galaxy Infotech IPO, while Maashitla Securities Private Limited is the registrar for the issue.The market maker for Virtual Galaxy Infotech IPO is Alacrity Securities Ltd.. Refer to Virtual Galaxy Infotech IPO RHP for detailed information.
Incorporated in September 1997, Virtual Galaxy Infotech Limited (VGIL) is an IT services and consulting firm based in Nagpur, Maharashtra, India.
VGIL delivers innovative software products and services across multiple sectors, including Banking and finance, ERP, e-government, Web Services, Cloud Computing, Big Data, IoT, and System Integration.
The company has successfully provided advanced technology solutions to more than 5,000 bank branches, manufacturing firms, and businesses.
Their offerings focus on transaction automation, customer service delivery, compliance, and decision support.
The company's flagship product, "e-banker," is a comprehensive Core Banking Solution designed to address the dynamic techno-financial environment of banking institutions.
The company has over 300 professionals dedicated to delivering high-quality software solutions for clients.
VGIL's expertise extends to supporting diverse organizations, including bank branches, manufacturing setups, and business houses, ensuring reliable and efficient technology services that empower organizations to thrive in a fast-evolving digital landscape.
The company holds several quality certifications, including ISO 9001:2015, ISO/IEC 27001:2013, ISO/IEC 20000-1:2018, and ISO/IEC 23001-7:2023.
The company serves commercial banks, cooperative banks, NBFCs, SACCOs in the BFSI sector, and corporate clients in the sugar, solvex, textiles, fertiliser, seed, and education industries.
The company serves clients in over 15 Indian states and has expanded internationally to Tanzania and Malawi.
As of December 31, 2024, the company had a total strength of 329 employees on its payroll.
Competitive Strength
- Offer integrated software solutions for the banking and financial services sector.
- Diversified business across several verticals.
- Diversified revenue streams.
- Recurring and non-recurring, repeat revenues from long-standing customer relationships.
- Experienced promoters and senior management team with strong industry expertise and successful track record.
Virtual Galaxy Infotech IPO Analysis
Virtual Galaxy Infotech Limited – A Strategic IPO Overview
Virtual Galaxy Infotech Limited is entering the capital markets with an Initial Public Offering (IPO) of up to 65,70,000 equity shares. With a legacy of over two decades in the tech and fintech domain, the company aims to scale its presence through a fresh infusion of capital. This IPO is a significant milestone in the company’s journey, especially as it transitions from a private to a public entity.
Summary of the IPO
The IPO of Virtual Galaxy Infotech is a 100% fresh issue with no Offer for Sale (OFS). The issue will be listed on NSE Emerge. The opening date is May 9, 2025, and it closes on May 14, 2025.
The company intends to use the proceeds to:
Fund capital expenditures for new infrastructure at MIHAN SEZ, Nagpur.
Enhance working capital.
General corporate purposes.
This offering is well-timed given the firm’s impressive financial recovery and profitability metrics over the last three fiscal years.
Company Background and Evolution
History and Evolution
Established in 1997, Virtual Galaxy Infotech has evolved into a key player in providing ERP, CBS (Core Banking Solutions), and integrated financial services platforms. Major milestones include the launch of IBS ERP for industries, international CBS implementation, and awards such as “Financial Services Tech of the Year” in 2024.
Promoter and Management
The company is promoted by Mr. Avinash Narayanrao Shende and Mr. Sachin Purushottam Pande. Their strategic leadership has been pivotal in expanding the company’s footprint in India and abroad.
Financial Performance
Revenue Growth
FY 2022: ₹4,262.34 Lakhs
FY 2023: ₹5,848.40 Lakhs
FY 2024: ₹10,124.72 Lakhs
This reflects a robust CAGR, indicative of increased project acquisitions and market demand.
Profitability Metrics
FY 2024 PAT: ₹2,741.51 Lakhs
EBITDA Margin (FY 2024): 50.38%
ROE (FY 2024): 49.72%
The company exhibits strong operational efficiency and high returns on equity and capital employed.
Debt and Liquidity
Debt-to-equity: 0.94
Current Ratio: 0.99
Although leverage is moderate, the liquidity position should be monitored closely.
Key Strengths and Opportunities
Core Competencies
Proven track record in BFSI and ERP sectors.
High EBITDA and PAT margins compared to industry peers.
Strong client base including co-operative and national banks.
Proprietary and scalable technology platforms.
Certifications and Recognition
ISO certifications (9001, 27001, 20000)
Recognized for excellence in fintech integration and analytics.
Risk Factors to Consider
Business and Operational Risks
High client concentration in government/co-operative sectors.
Regulatory risks associated with the financial sector.
A large portion of revenue depends on project-based contracts.
Financial Risks
Relatively low current ratio indicates potential liquidity constraints.
Working capital-intensive model with fluctuating inventory and receivables.
Pros and Cons of Investing
Pros
Strong revenue and profit growth.
Promising market and product portfolio.
High ROE and ROCE.
Expansion plans in SEZ, boosting scalability.
Cons
Moderate debt levels.
Dependence on specific industry verticals.
Competitive technology landscape.
Low liquidity ratios.
Final Verdict
Virtual Galaxy Infotech’s IPO appears fundamentally sound, backed by years of expertise, expanding revenue, and recognized innovation. Investors looking for a growth-oriented, tech-driven, and niche-focused SME listing may find this IPO worth considering — though attention should be paid to liquidity metrics and sectoral risks.
FAQs About Virtual Galaxy Infotech IPO
Virtual Galaxy Infotech IPO will open on 09 May, 2025 and close on 14 May, 2025. Investors must apply within this period to participate.
The Virtual Galaxy Infotech IPO price band is set between ₹135.00 and ₹142.00 per share. The minimum lot size is 1000, requiring an investment of at least ₹142000.00.
The Virtual Galaxy Infotech IPO shares are expected to be listed on 19 May, 2025, subject to regulatory approvals and final allotment.
You can track your Virtual Galaxy Infotech IPO application status on the registrar’s website: Link Intime or KFintech using your PAN, application number, or DP ID
The Virtual Galaxy Infotech IPO will be listed on major stock exchanges such as BSE, where you can trade shares once they are listed.
Unlike many emerging fintechs, VGIL has a proven track record of over 25 years, robust margins, and an established clientele across public and private banking sectors.
Proceeds will primarily fund a new data center in MIHAN SEZ, working capital needs, and other corporate requirements to scale operations.
Yes, based on recurring contracts in CBS and ERP implementations across co-operative banking, the revenue appears stable with strong year-on-year growth.
Post-IPO, the company plans to expand into new geographies, digitize more banking services, and potentially explore SaaS offerings.
The company's ability to customize ERP and CBS platforms for localized banking needs, backed by award-winning implementations, gives it a strategic edge.
No formal dividend policy has been announced. Future dividends will depend on profits, working capital, and expansion plans.
Yes, with strong fundamentals and a niche market presence, the IPO could present an attractive opportunity for long-term retail investors.