Virtual Galaxy Infotech Shares List at 26.7% Premium at ₹180 per Share
Virtual Galaxy Infotech shares debuted in the stock market today on the NSE SME platform. The Maharashtra-based IT services and consulting company listed at ₹180 per share - a 26.7 % premium to the issue price of ₹142 per share.
Even with the premium listing, the opening price was much lower than grey market expectations. The unlisted shares had reportedly traded higher at ₹252 per share prior to listing, implying a grey market premium (GMP) of ₹110, or 77.46 per cent, above the issue price.
IPO Performance and Details
The initial public offering (IPO) of Virtual Galaxy Infotech sought to raise ₹93.29 crore. The issue structure was purely a new issue of 6.57 million shares, or 65.7 lakh shares, and not an offer-for-sale element. This implies that all the proceeds from the issue would accrue to the company.
The public issue was open for subscription between May 9, 2025, and May 14, 2025. It was oversubscribed well by the investors with an overall oversubscription of 231.45 times. The segment of non-institutional investors (NIIs) remained the most oversubscribed at 590.27 times, while retail investors were oversubscribed at 134.03 times and qualified institutional buyers (QIBs) at 129.72 times.
Price band for the issue was fixed between ₹135 to ₹142 per share. Minimum bid size was 1,000 shares and the minimum investment of above ₹1.42 lakh was required for retail investors placing bids at the higher price band.
Maashitla Securities was the registrar of the issue with Smart Horizon Capital Advisors being the book-running lead manager alone.
Company Profile and Use of Proceeds
Incorporated in September 1997, Virtual Galaxy Infotech is a SaaS product company specializing in core banking software solutions, IT solutions, ERP implementation, development of customized software solutions, and IT services.
The company deals with the BFSI, ERP, and E-governance sectors, servicing banks, microfinance institutions, and non-banking finance companies (NBFCs). The company offers development, customization, installation, implementation, post-implementation support, monitoring, and maintenance as its services. The company is managed by Avinash Narayanrao Shende and Sachin Purushottam Pande.
Out of the net proceeds, or the whole proceeds as no OFS is present, the company has specified various major purposes:
- ₹34.36 crore or ₹34.26 crore will be spent in creating another development facility in Nagpur, Maharashtra.
- ₹3 crore will be used for repayment or prepayment of certain borrowings.
- ₹5.05 crore is to be used for capital expenditure on IT upgradation, i.e., on the procurement of GPU, server & storage systems at the data centre.
- ₹18.90 crore will be invested in the recruitment of manpower for the upgradation, maintenance, and development of existing products.
- ₹14.06 crore will be allocated to business development and marketing exercises.
- The balance amount will be utilized for general corporate purposes. One source quotes ₹18.02 crore towards general corporate purposes.
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