SaaS firm Virtual Galaxy Infotech files draft IPO papers with NSE Emerge

BFSI-focused SaaS firm Virtual Galaxy Infotech Ltd on Wednesday said it has filed draft papers with NSE Emerge to raise funds through an Initial Public Offering (IPO).

The Nagpur-headquartered company's IPO comprises a fresh issue of 66 lakh equity shares with a face value of Rs 10 each, according to a statement.

Proceeds from the issue worth Rs 34.26 crore will be used for setting up additional development facilities in Nagpur, Rs 18.9 crore for funding expenditure related to enhancement, maintenance and upgrading existing products, Rs 14.06 crore for funding business development and marketing activities.

Additionally, Rs 5.05 crore will be utilised for procuring GPU, server & storage system at the data centre, Rs 3 crore for payment of debt and the remaining capital will be used for general corporate purposes.

In July, the company raised Rs 21.44 crore in a pre-IPO funding round from the marquee investors.

VGIL is a SaaS product-focused company engaged in providing core banking software solutions, IT solutions, ERP implementation and customised software solutions development, and IT services for the BFSI, ERP and E-Governance domains.

The company is primarily involved in the development, customisation, installation and implementation of software applications, along with comprehensive post-implementation support, monitoring and maintenance services for the delivered solutions.

On the financial front, Virtual Galaxy Infotech registered Rs 71.6 crore in revenue from operations with a profit after tax (PAT) of Rs 18.9 crore in the first half of the current fiscal year ended September 30, 2024.

Smart Horizon Capital Advisors is the book-running lead manager and Maashitla Securities is the registrar to the issue.