The ₹93.29 crore initial public offering (IPO) of 65.70 lakh shares would mark the market debut of Virtual Galaxy Infotech Limited, an IT services and consulting firm. Beginning on May 9, 2025, and ending on May 14, 2025, is the subscription window. As the firm gets ready for its Monday, May 19, 2025, listing on the NSE SME platform, investors can follow its market journey.
With equity shares of ₹10 face value being sold in a lot size of 1000 shares and a price range of ₹135 to ₹142 per share, Virtual Galaxy Infotech Limited is conducting a public offering. Retail investors can participate by purchasing one lot for a minimum investment of ₹1,35,000 while High Net Worth Individuals (HNIs) may apply for 2 lots with a minimum investment of ₹2,84,000. A quick post-subscription timetable has been envisaged by the company; share allocation notifications are scheduled on May 15, 2025, and on May 19, 2025, it will make its debut on the NSE SME. As this IT services and consulting firm enters the public market, investors are poised to take advantage of a new opportunity in India's IT services industry.
Virtual Galaxy Infotech Limited IPO is a fundraise worth ₹93.29 crores comprising purely of a fresh issue with 65,70,000 shares reserved for the market maker Alacrity Securities Limited. Qualified Institutional Buyers are being offered not more than 50% of the net issue, retail investors are being offered not less than 35% of the net issue and Non-Institutional Investors (NIIs) / High Net-worth Individuals (HNIs) are being offered not less than 15% of the net issue. The IPO will be available for subscription from May 9, 2025, to May 14, 2025, providing an opportunity for investors looking to gain a stake in the IT sector.
| Virtual Galaxy Infotech IPO date | May 9, 2025 - May 14, 2025 |
| Price band | ₹135 to ₹142 per share |
| Face value | ₹10 per share |
| Lot size | 1000 shares |
| Issue type | Book Built Issue IPO |
| Fresh issue size | 65,70,000 shares amounting to ₹93.29 crores |
| Total issue size | 65,70,000 shares amounting to ₹93.29 crores |
| Listing at | NSE SME |
| Market maker portion | 3,36,000 shares - Alacrity Securities Ltd |
| Shareholding post-issue | 2,48,68,635 shares |
| Shareholding pre-issue | 1,82,98,635 shares |
The Virtual Galaxy Infotech Limited IPO opens for subscription on May 9, 2025, and closes on May 14, 2025, with allotment scheduled for May 15, 2025.
| IPO open date | May 9, 2025 (Friday) |
| IPO close date | May 14, 2025 (Wednesday) |
| Basis of allotment | May 15, 2025 (Thursday) |
| Initiation of refunds | May 16, 2025 (Friday) |
| Credit of shares to Demat account | May 16, 2025 (Friday) |
| Listing date on NSE SME | May 19, 2025 (Monday) |
| Cut-off time for UPI mandate confirmation | 5 PM on May 14, 2025 (Wednesday) |
Founded in September 1997, Virtual Galaxy Infotech Limited (VGIL) is a leading IT services and consulting firm headquartered in Nagpur, Maharashtra, India. With a strong presence across a range of industries, VGIL provides innovative software solutions and services in sectors such as banking and finance, ERP, e-government, web services, cloud computing, big data, IoT, and system integration. The company has earned a reputation for delivering advanced technology solutions, successfully serving over 5,000 banking branches, manufacturing firms, and businesses, with a focus on transaction automation, customer service delivery, compliance, and decision support.
VGIL’s flagship product, "e-banker," is a comprehensive Core Banking Solution designed to meet the evolving techno-financial needs of banking institutions. With a team of over 300 professionals, VGIL ensures the delivery of high-quality, reliable technology services to organisations across diverse sectors. The company’s robust expertise and commitment to excellence have earned it multiple quality certifications, including ISO 9001:2015, ISO/IEC 27001:2013, and ISO/IEC 20000-1:2018. Serving clients in over 15 Indian states, as well as expanding internationally to Tanzania and Malawi, VGIL continues to empower businesses to thrive in a rapidly changing digital landscape.
Virtual Galaxy Infotech Limited proposes to utilise the net proceeds from its IPO to support a range of strategic initiatives aimed at strengthening its operational and technological capabilities. These include capital expenditure for establishing an additional development facility in Nagpur, Maharashtra (₹342.68 million), partial repayment or prepayment of existing borrowings (₹30 million), and investment in GPU, server, and storage systems for its data centre (₹50.50 million). Further allocations are directed towards enhancing, maintaining, and upgrading its existing products through manpower expansion (₹189 million), funding business development and marketing efforts (₹140.60 million), and meeting general corporate purposes, thereby positioning the company for sustained growth and innovation.
As of March 31, 2024, the key performance indicators reflect the company's financial health with a Return on Equity of 53.52%, Return on Capital Employed (ROCE) at 31.68% and a Debt-to-Equity ratio of 0.93. The Return on Net-Worth (RoNW) stands at 39.95%, and the PAT Margin was 26.04. The Price-to-Book Value was 5.66. The company’s market capitalisation is ₹353.13 crore.
| Period Ended | Dec 31, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Revenue | 101.37 | 63.58 | 59.76 | 43.44 |
| Assets | 146.03 | 116.93 | 84.36 | 67.80 |
| Net Worth | 85.86 | 41.40 | 20.40 | 20.14 |
| Profit After Tax | 27.42 | 16.54 | 0.72 | 0.40 |
| Reserves & Surplus | 67.56 | 30.40 | 9.40 | 9.14 |
| Total Borrowing | 33.13 | 38.64 | 38.85 | 35.56 |
Amount in ₹ crores
The pre-IPO EPS is at ₹9.04 while the post-IPO EPS will be ₹6.65. Similarly, the pre-IPO Price to Earnings ratio is 15.71 and will become 21.35 post-IPO.
Virtual Galaxy Infotech has shown impressive financial growth in recent years. Its revenue jumped from ₹42.62 crore in FY22 to ₹101.25 crore in just the first nine months of FY25. Profitability has followed suit, with net income rising sharply from ₹0.72 crore in FY23 to ₹16.54 crore in FY24. This growth highlights not just increasing demand but also improved operational efficiency. The company’s strength lies in its focused business model and wide product range, offering services like core banking software, digital payments, GST compliance, and hospital automation. These offerings cater to essential sectors like BFSI, ERP, and e-governance, allowing Virtual Galaxy to build long-term, trusted relationships with clients.
Its reach is another key advantage. The company operates across several Indian states and has made its mark internationally in countries like Tanzania and Malawi, along with partnerships in Israel. With over 5,000 bank branches using its solutions, Virtual Galaxy has built a large and loyal customer base. The company is led by experienced technocrats who bring decades of domain expertise. It also has a clear vision for the future, with IPO proceeds set to fund research, expansion, and infrastructure. Strong investor interest during the pre-IPO phase, where ₹21.44 crore was raised, further validates the company’s potential.
Despite its strengths, Virtual Galaxy faces some operational challenges. It has a long working capital cycle, meaning a lot of its cash is tied up in receivables and other current assets. In FY24, it took an average of 149 days to collect payments, and creditor days increased significantly to 196. This could point to stretched cash flows and a reliance on external funding, which stood at over 83 percent utilization of its fund-based limits. Such financial strain may restrict flexibility, especially during periods of rapid growth or unexpected delays.
The company also operates in a highly competitive and fragmented IT sector, where staying ahead means constantly adapting to new technologies and client needs. Many of its projects are tender-based, especially in the government and BFSI sectors, making revenue less predictable. Being listed on the SME platform adds another layer of risk, as such stocks tend to have lower trading volumes and limited liquidity. On top of that, a significant portion of its revenue depends on just a few sectors. Any slowdown or disruption in these areas could have a direct impact on the company’s financial health.
Being among the early public investors in Virtual Galaxy Infotech Limited could present an opportunity to participate in the company's growth trajectory in the IT services sector. However, investors should carefully assess multiple factors, including the company's operational track record, financial health, sector dynamics, and growth strategy, while also considering their own investment objectives and risk appetite before making an investment decision. It's recommended to review the offer document and seek professional advice if needed to make an informed choice about participating in this IPO.
What is the Virtual Galaxy Infotech Limited IPO?
The Virtual Galaxy Infotech Limited IPO is an NSE SME offering consisting of 65,70,000 equity shares with a face value of ₹10, aiming to raise ₹93.29 crore. The price band has been set between ₹135 to ₹142 per share, with a minimum order quantity of 1000 shares. This IPO will be open for subscription from May 9, 2025, to May 14, 2025. Smart Horizon Capital Advisors Private Limited is the book-running lead manager, Maashitla Securities Private Limited is the registrar while Alacrity Securities Limited is the market maker.
When will the Virtual Galaxy Infotech IPO open?
The Virtual Galaxy Infotech Limited IPO will open for subscription on May 9, 2025, and will close on May 14, 2025.
When is the Virtual Galaxy Infotech IPO listing date?
The tentative listing date for the Virtual Galaxy Infotech Limited IPO is Monday, May 19, 2025.
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