Virtual Galaxy Infotech IPO booked nearly 23 times on Day 3; GMP indicates 53% listing premium

Virtual Galaxy Infotech‘s initial public offering (IPO) has garnered healthy investor interest, with the subscription period set to close on May 14. As of May 13, the IPO was subscribed nearly 23 times. The decent response in the subscription phase is further supported by a healthy grey market premium (GMP), which is currently around Rs 75.

This represents a premium of nearly 53% over the issue price, indicating strong investor confidence and the potential for a favourable listing.

The IPO comprises a fresh issue of 6.57 million equity shares, aiming to raise Rs 93.29 crore. The price band for the public offer is set between Rs 135 and Rs 142 per share, with a lot size of 1,000 shares, requiring a minimum investment of Rs 1,42,000.

Proceeds from the IPO will be utilised for capital expenditure, including setting up an additional development facility in Nagpur, Maharashtra, repayment of certain borrowings, and procurement of GPUs and server systems for data centres. A portion of the money raised via the offer will be deployed for the enhancement and maintenance of existing products, manpower hiring, business development, marketing activities, and general corporate purposes.

Founded in 1997, Virtual Galaxy Infotech is a SaaS-focused company providing core banking software solutions, IT services, ERP implementation, and customised software development.

The company serves sectors such as BFSI, ERP, and e-governance, offering end-to-end services from development to post-implementation support. Over the years, it has built a reputation for delivering reliable and scalable software solutions to a wide range of clients.Financially, the company has demonstrated strong growth, with revenue increasing to Rs 63 crore in FY24. Profit after tax (PAT) also saw a significant rise, from Rs 40 lakh in FY22 to Rs 16.5 crore in FY24.The Virtual Galaxy Infotech IPO allotment will be finalised on May 15, shares credited to demat accounts on May 16, and the listing slated for May 19 on the NSE SME platform.

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