Virtual Galaxy Infotech IPO: Day 1 Subscription Status, Latest GMP, Price Band And Key Dates

The initial public offering of Virtual Galaxy Infotech opened for subscription on Friday, May 9. It comprises entirely a fresh issue of 65.7 lakh shares.

Virtual Galaxy Infotech is an IT company engaged in offering solutions in cloud computing, web services and internet of things (IoT). It is headquartered in Nagpur. 

Here’s everything you need to know about the Virtual Galaxy Infotech IPO.

The Virtual Galaxy Infotech IPO opened to a tepid demand from investors on Friday. The NSE SME issue subscribed only 0.06 times, or 6%, as of 12:25 p.m.

• QIB: nil vs 12.44 lakh shares on offer

• Non Institutional Investors (NIIs): 0.02 times, or 2%, vs 9.5 lakh shares on offer

• Retail: 0.10 times, or 10%, vs 22 lakh shares on offer

According to Investorgain, the grey market premium (GMP) for the Virtual Galaxy Infotech IPO stood at Rs 6 at 9:59 a.m. on May 9. It indicates that the listing price will be Rs 148 apiece, with a potential gain of 4.23%.

Note: GMP is not an official source of data and is based on speculation.

The Virtual Galaxy Infotech IPO is open for subscription from May 9 to May 14. The allotment of shares is proposed to be finalised on May 15. Shares will be credited to the Demat accounts of successful bidders on May 16 and refunds will be initiated for non-allottees on the same day. 

The shares of the IPO are proposed to be listed on the NSE SME platform on May 19. 

The Virtual Galaxy Infotech IPO is a book-building issue worth Rs 93.29 crore, comprising a fresh issue of 65.7 lakh shares. The price band for the IPO has been set between Rs 135 and Rs 142 per share. 

Retail investors can invest with a minimum lot size of 1,000 shares, requiring a minimum investment of Rs 1,42,000. High Networth Individuals (HNIs) can invest by placing bids for at least two lots, which amounts to 2,000 shares. This would require a minimum investment of Rs 2,84,000.

Smart Horizon Capital Advisors Pvt. is the book-running lead manager of the Virtual Galaxy Infotech IPO. Maashitla Securities Pvt. is the registrar and Alacrity Securities Ltd. is the market maker for the issue. 

Virtual Galaxy Infotech is an IT services company that provides solutions in big data, system integration, cloud computing and web services. The company’s website says it has provided advanced technology to over 5,000 bank branches, manufacturing firms and businesses.

Use Of Proceeds

The proceeds from the IPO will be used for funding capital expenditure for setting up a development facility in Nagpur, repaying and prepaying borrowings, hiring manpower and general corporate purposes. 

Financials

The company’s profit after tax (PAT) increased multi-fold year-on-year to Rs 16.3 crore in FY24 from Rs 1.8 crore in FY23. Total revenue rose 5% YoY to Rs 61.52 crore in FY24 from Rs 58.56 crore in FY23.

For the nine months ended Dec. 31, 2024, it reported a PAT of Rs 27.42 crore and total revenue of Rs 101.37 crore.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.