Virtual Galaxy Infotech IPO Day 1; check subscription, GMP, key dates

Virtual Galaxy Infotech IPO Day 1 update: The initial public offering (IPO) of IT services firm Virtual Galaxy Infotech, which opened for subscription today, May 9, 2025, is receiving a muted response from investors. The SME issue has been subscribed to only 0.28 times or 28 per cent as of 1.30 PM, as per NSE data.   The portion booked for retail investors was subscribed 12 per cent, qualified institutional buyers (QIBs) quota was subscribed 82 per cent and the non-institutional investors (NIIs) category was subscribed mere 2 per cent.  

 

Nagpur-based Virtual Galaxy Infotech aims to raise ₹93.29 crore through a fresh issue of 6.57 million equity shares. There is no offer for sale (OFS) component. The company has reserved around 50 per cent of the issue for qualified institutional buyers (QIBs), 35 per cent for retail investors and 15 per cent for non-institutional investors (NIIs).

 

Virtual Galaxy Infotech IPO GMP

On Friday, the unlisted shares of Virtual Galaxy Infotech were trading at ₹150, commanding a grey market premium (GMP) of ₹8 or 5.63 per cent compared to the upper price band, according to sources tracking unofficial market activities.

 

Virtual Galaxy Infotech IPO

The four-day bidding window will close on Wednesday, May 14, 2025. The basis of allotment of shares is likely to be finalised on Thursday, May 15, 2025. Shares of Virtual Galaxy Infotech will be listed on the NSE SME platform on the NSE SME platform tentatively on Monday, May 19, 2025.

 

The price band for the Virtual Galaxy Infotech IPO is set at ₹135-142 per equity share. Retail investors would require a minimum investment amount of ₹1,35,000 to bid for one lot comprising 1,000 shares. High-net-worth individuals (HNIs) need a minimum investment of ₹2,84,000 for two lots.  

 

Maashitla Securities is the registrar of the issue. Smart Horizon Capital Advisors is the sole book-running lead manager for the issue. 

 

From the net issue proceeds, the company plans to use ₹34.26 crore for capital expenditure towards setting up an additional development facility in Nagpur, Maharashtra, ₹3 crore for repayment/prepayment of certain borrowings availed by the company. Additionally, ₹5.05 crore will be used for investment in procuring GPU, server & storage system at the data centre, ₹18.90 crore for funding of expenditure related to enhancement, maintenance and upgrading existing products through manpower hiring, and ₹14.06 crore for funding for business development and marketing activities. The remaining funds will be used for general corporate purposes. 

 

About Virtual Galaxy Infotech

Incorporated in 1997 in Nagpur, Virtual Galaxy Infotech is a SaaS product-focused company. It provides core banking software solutions, IT solutions, ERP implementation and customised software solutions development, IT services for the BFSI, ERP, and E-Governance domains. It 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. The company has diverse clientele, including banks, microfinance institutions and non-banking financial companies (NBFCs).