Virtual Galaxy Infotech IPO Day 1: GMP, subscription status, price band, other details of NSE SME IPO

Virtual Galaxy Infotech IPO: The initial public offering (IPO) of IT services firm Virtual Galaxy Infotech opened for subscription on Friday, May 9, and will close on Wednesday, May 14. The ₹93 crore SME IPO is entirely a fresh issue of nearly 66 lakh shares. The IPO is witnessing tepid response and current grey market trends indicate the stock could be listed at a nominal premium of 4 per cent.

Virtual Galaxy Infotech IPO subscription status

By 11:30 AM on Friday, the first day of subscription, the issue had been subscribed 4 per cent, with the retail portion booked 7 per cent and the segment reserved for non-institutional investors (NIIs) subscribed 1 per cent. The segment reserved for qualified institutional buyers had not seen any subscriptions until then.

Virtual Galaxy Infotech IPO details

1. Virtual Galaxy Infotech IPO GMP: According to market sources, the latest grey market premium (GMP) of Virtual Galaxy Infotech shares was ₹6. The latest GMP indicates the stock could be listed at a 4.23% premium.

2. Virtual Galaxy Infotech IPO date: The SME IPO opened for subscription on Friday, May 9, and will close on Wednesday, May 14.

3. Virtual Galaxy Infotech IPO price: The price band of the public issue has been fixed at ₹135 to ₹142 per equity share.

4. Virtual Galaxy Infotech IPO size: The company intends to raise ₹93.29 crore from the issue, which it will use to fund capital expenditure requirements for setting up an additional development facility in Nagpur, paying certain borrowings, and investing in procuring GPU, server, and storage systems, among other things.

5. Virtual Galaxy Infotech IPO lot size: Bidders can apply in lots, and one lot of the SME IPO comprises 1,000 company shares. This means the minimum and maximum amount of investment for retail investors is ₹1,42,000.

6. Virtual Galaxy Infotech IPO reservation: Over 26 per cent of the net issue is reserved for QIBs, 46.5 per cent for retail investors, and nearly 21 per cent for NIIs.

7. Virtual Galaxy Infotech IPO allotment date: The IPO is closing on May 14, so as per SEBI’s listing rules, the company is expected to finalise the share allotment on Thursday, May 15. Successful bidders can expect shares of the company in their demat accounts on Friday, May 16, and bidders who fail to get the allocation may get the refund on the same day.

8. Virtual Galaxy Infotech IPO book-running lead manager and registrar: Smart Horizon Capital Advisors Private Limited is the book-running lead manager, while Maashitla Securities Private Limited is the registrar for the issue.

9. Virtual Galaxy Infotech IPO listing: As per SEBI’s T+3 rule of IPO listing, the SME IPO is proposed for listing on the NSE SME on Monday, May 19.

10. Virtual Galaxy Infotech business overview: According to the company’s RHP (Red Herring Prospectus), Virtual Galaxy Infotech is a SaaS product focused company engaged in providing core banking software solution, IT solutions, ERP implementation and customised software solutions development, IT services for the BFSI, ERP, and e-governance domains.

The company’s profit after tax (PAT) for FY22 stood at ₹1.26 crore, which increased to ₹1.8 crore in FY23 and ₹16.30 crore in FY24. Till December 31 of the last financial year, the company’s PAT was ₹27.42 crore.

Revenue from operations was ₹42.62 crore in FY22, ₹58.48 crore in FY23 and ₹61.46 crore in FY24. Till December 31 of the last financial year, the company’s revenue was ₹101.25 crore.

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