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Virtual Galaxy Infotech IPO
Virtual Galaxy Infotech Ltd
₹1,35,000 /1000 sharesMinimum Investment
Virtual Galaxy Infotech IPO Listing Details
| Listed On | Issue Price | Listing Price | Listing Gains |
|---|---|---|---|
| -- | ₹142.00 | ₹180.00 | ₹38.00 (26.76%) |
Virtual Galaxy Infotech IPO Details
| Bidding Dates | Min. Investment | Lot Size | Price Range |
|---|---|---|---|
| 9 May ‘25 - 14 May ‘25 | ₹1,35,000 | 1,000 | ₹135 - ₹142 |
| Issue Size | IPO Doc |
|---|---|
| 93.29Cr | RHP PDF |
Subscription rate
As of 14 May'25, 05:00 PM
| Qualified Institutional Buyers | 129.72x |
| Non-Institutional Investor | 590.52x |
| Retail Individual Investor | 128.29x |
| Total | 212.39x |
About Virtual Galaxy Infotech
Founded in
1997
Managing director
Mr Sachin Purushottam Pande
Parent organisation
Virtual Galaxy Infotech Ltd
Strengths & Financials of Virtual Galaxy Infotech
Strengths
Risks
Virtual Galaxy Infotech claims to provide an all-inclusive platform for the BFSI sector through its integrated software solutions. The company’s core banking solution, e-Banker, offers a broad range of functionalities such as asset liability management (ALM), anti-money laundering (AML), and fraud risk management systems (FRMS), among others. By offering end-to-end solutions across multiple payment channels and compliance systems, the company aims to help financial institutions streamline operations and enhance customer service.
The company claims to serve a wide range of industries, including BFSI, ERP, and e-governance. Virtual Galaxy Infotech claims to work with diverse clients, such as commercial banks, cooperative banks, NBFCs, and government entities like the Maharashtra Labour Welfare Board and Maharashtra State Agricultural Marketing Board (MSAMB).
Virtual Galaxy Infotech claims to have a diversified revenue model that includes income from software licences, subscriptions, implementation services, technical support, and annual maintenance contracts (AMC). The company claims that its broad revenue ensures it is not overly reliant on any single revenue stream, providing a balanced and resilient financial foundation.
Virtual Galaxy Infotech claims to maintain strong, long-term relationships with its customers, enabling them to cross-sell a broad range of products and services. The company benefits from recurring revenues, AMC, SaaS purchases, and periodic technical support. In addition, non-recurring revenues are generated from new product licences, add-on features, and implementation charges. For the period ended December 31, 2024, Virtual Galaxy Infotech's revenue from existing customers was Rs 69.13 crore, and new customer revenue amounted to Rs 32.12 crore.
The company is ISO 9001:2015 certified for quality management systems, ISO/IEC 27001:2013 certified for information security management systems, ISO/IEC 20000-1:2018 certified for IT service management, and ISO/IEC 23001-7:2023 certified for IT disaster recovery and business continuity.
The company has seen a consistent increase in revenue from operations and profit after tax (PAT). Revenue from operations increased from Rs 43.32 crore in FY22 to Rs 59.68 crore in FY23, finally reaching Rs 63.50 crore in FY24. PAT also increased from Rs 0.40 crore in FY22 to Rs 0.72 crore in FY23, finally hitting Rs 16.54 crore in FY24.
A substantial portion of Virtual Galaxy Infotech's revenues comes from its top 10 customers, who use their core banking software, e-Banker. For the period ended December 31, 2024, the revenue from these customers amounted to Rs 82.15 crore (81.14 percent), Rs 44.39 crore (72.22 percent) in FY24, Rs 39.78 crore (68.02 percent) in FY23, and Rs 34.07 crore (79.94 percent) of the company’s total revenue in FY22. Any loss of key clients using e-Banker could result in significant revenue loss and harm the company’s financial standing.
Virtual Galaxy Infotech derives a large portion of its revenue from clients in the BFSI sector. For the period ended December 31, 2024, the revenue from this sector amounted to Rs 94.35 crore (93.19 percent), Rs 56.25 crore (91.52 percent) in FY24, Rs 54.19 crore (92.67 percent) in FY23, and Rs 40.16 crore (94.22 percent) of their total revenue in FY22. Any loss or delay in orders from clients in this sector or failure to maintain favourable terms could adversely impact the company’s revenue, business growth, and cash flow.
A significant portion of Virtual Galaxy Infotech’s revenue comes from customers located in Maharashtra. For the period ended December 31, 2024, the revenue from these customers amounted to Rs 90.53 crore (89.42 percent) of the total revenue, Rs 50.62 crore (82.37 percent) in FY24, Rs 42.84 crore (73.25 percent) in FY23, and Rs 37.40 crore (87.76 percent) in FY22. Any adverse political, economic, or regulatory developments in this region could negatively impact the company's operations, financial condition, and future prospects.
The company, its promoters, directors, group companies, key managerial personnel, and senior management personnel are involved in several ongoing legal proceedings, including criminal, statutory/regulatory, and tax-related cases. Any adverse judgments in any of these cases could be detrimental to the company’s business prospects.
The company operates in international markets like Tanzania and Malawi, exposing it to risks such as compliance with local laws, import/export restrictions, foreign exchange volatility, and economic instability. Non-compliance with local regulations could result in penalties, legal issues, and the termination of contracts, negatively affecting the company’s profitability and operations.
The company relies heavily on its top 10 suppliers for its operations and has not established any long-term contracts with them. For the year ending December 31, 2024, FY24, FY23, and FY22, they contributed Rs 34.26 crore (81.56 percent), Rs 11.62 crore (57.99 percent), Rs 27.55 crore (85.53 percent), and Rs 17.78 crore (78.25 percent) of total purchases, respectively. The company cannot guarantee that it will be able to maintain strong relationships with these suppliers or quickly replace them if lost. Any disruption, such as bankruptcy or mergers, could have a detrimental effect on the company's operations and profitability.
The company has experienced negative cash flows from investing activities in the past years. It amounted to Rs 38.08 crore for the year ending December 31, 2024, Rs 31.61 crore in FY24, Rs 8.59 crore in FY23, and Rs 6.31 crore in FY22. Going forward, the company needs to keep a healthy balance between cash generation and investment to grow the business, so that the debts taken on can be serviced/repaid in time.
The company had contingent liabilities that had not been reflected in its financial statements, including liabilities related to direct and indirect tax matters and bank guarantees. As of December 31, 2024, the total contingent liabilities amounted to Rs 50.83 crore. If any of these contingent liabilities materialise, they could negatively affect the company's financial condition.
As of December 31, 2024, the company had outstanding financial indebtedness of Rs 35.47 crore. Any failure to service or repay these loans can harm the company’s financial condition.
Virtual Galaxy Infotech Financials
*All values are in Rs. Cr
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Application Details of Virtual Galaxy Infotech IPO
| Apply as | Price band | Apply upto |
|---|---|---|
| Regular | ₹135 - 142 | ₹2 - 5 Lakh |
| High Networth Individual | ₹135 - 142 | ₹2 - 5 Lakh |
For Virtual Galaxy Infotech IPO, eligible investors can apply as Regular.