Virtual Galaxy Infotech Limited is coming up with an IPO with a fresh issue of 65,70,000 shares worth INR 93.29 crores. The company aims to set up an additional development facility, repay certain borrowings, procurement of GPUs, fund business development and corporate purposes. 

Virtual Galaxy Infotech IPO – Important Dates

Virtual Galaxy Infotech Limited IPO – Company Profile

Virtual Galaxy Infotech Limited provides core banking software, ERP implementation, and customised IT solutions for BFSI, E-Governance, and enterprise sectors. With a strong SaaS model and comprehensive support services, the company ensures seamless end-to-end software delivery and post-deployment maintenance.

Founded in 1997 in Nagpur, the company’s flagship product, E-Banker, serves banks, NBFCs, and societies with both on-premise and SaaS deployment options. Its diversified portfolio includes IBS-ERP, e-APMC, V-Pay, V-SOC, E-Autopsy Software, VGST, and Loan Origination System (LOS).

Certified under ISO 9001:2015, ISO/IEC 27001:2013, ISO/IEC 20000-1:2018, and ISO/IEC 23001-7:2023, Virtual Galaxy Infotech serves clients across India and overseas markets like Tanzania and Malawi, backed by 26+ years of experience and a team of 300+ professionals.

Virtual Galaxy Infotech Ltd IPO Fundamental Analysis

Virtual Galaxy Infotech Limited’s financial analysis reveals a mixed performance. Revenue has shown strong growth along with rising profits and assets, with improved liquidity. However, the inventory turnover ratio has decreased. 

• Revenue Trend: The revenue increased from ₹5,855.77 lakhs in March 2023 to ₹6,152.10 lakhs in March 2024. The revenue for the 9-month period ended December 2024 is INR 10,137.06 lakhs.   

• Equity and Liabilities: Equities have shown a consistent increase over the periods, reflecting potential growth and expansion. The debt-equity ratio has decreased, indicating reduced reliance on debt financing.

• Profitability: The profit after tax (PAT) has increased from ₹179.53 lakhs in March 2023 to ₹1,630.19 lakhs in March 2024, boosting investor confidence. The profit for the 9-month period ended in December 2024 is ₹2,741.51 lakhs.

• Earnings per Share (EPS): The diluted EPS has increased from ₹1.09 in March 2023 to ₹9.88 in March 2024, reflecting higher earnings per share for investors. The diluted EPS for the 9-month period ended in December 2024 is ₹15.17. 

• Return on Net Worth (RoNW): The RoNW has risen from 7.29% to 39.82%, indicating an increase in the company’s ability to generate returns on shareholder equity.

• Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has decreased, indicating weakening liquidity and potential challenges in meeting short-term obligations. 

• Inventory Turnover Ratio: There’s a decrease in the Inventory Turnover Ratio, which might suggest slower sales or inefficient inventory management. 

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Virtual Galaxy Infotech IPO Financial Analysis

Virtual Galaxy Infotech Limited IPO Peer Comparison

Virtual Galaxy Infotech Limited shows substantial revenue, Veefin Solutions Limited leads in NAV, Network People Services Technologies Limited shows strength in revenue, and Trust Fintech Limited in EPS. 

Virtual Galaxy Infotech Ltd IPO Objective

The main objective of Virtual Galaxy Infotech Limited is to set up an additional development facility, repay or prepay certain borrowings availed by the company, invest in procuring GPU, and fund business development, marketing activities, and general corporate purposes. 

1. Capital expenditure towards setting up additional development facility in Nagpur: The company intends to utilise INR 3,426.83 lakhs from the Net Proceeds to fund the capital expenditure towards setting up an additional development facility in Nagpur, Maharashtra. 

2. Repayment or prepayment of certain borrowings availed by the company: The company intends to utilise INR 300 lakhs from the Net Proceeds for the repayment or prepayment of certain borrowings availed by the company. 

3. Investment in procuring a GPU, server & storage system at the Data Centre: The company intends to utilise INR 505 lakhs from the Net Proceeds to invest in procuring a GPU, server & storage system at the Data Centre. 

4. Expenditure funds: The company intends to utilise INR 1,890 lakhs from the Net Proceeds for the funding of capital expenditure related to the enhancement, maintenance and upgrading of existing products through manpower hiring. 

5. Funding for business development: The company intends to utilise INR 1,406 lakhs from the Net Proceeds for the funding of business development, marketing activities and general corporate purposes. 

Virtual Galaxy Infotech IPO Risks And Challenges

Virtual Galaxy Infotech Limited’s risks include dependency on core banking software, customers, banks, government and private sector clients for the majority of its revenue, any loss could adversely impact operations, profitability and business performance. 

• The company is dependent on its Core Banking Software for a substantial portion of its revenue. Any loss of any one or more of their major clients could have a material effect on their business operations and profitability. 

• The company is dependent on orders from the banks, government and private sector clients for the majority of its revenue. Any loss or inability to qualify for such orders may adversely affect their business, financial condition, operations and prospects. 

• The company’s significant revenue is derived from the customers located in Maharashtra. Any adverse developments in the region could adversely affect their business, operations, cash flows and financial condition. 

Virtual Galaxy Infotech Ltd IPO – Industry & Market Potential

The Indian IT industry reached US$ 227 billion in revenue in FY22 with a 15.5% YoY growth and was estimated at US$ 245 billion in FY23. It is expected to grow further with IT spending projected to reach US$ 138.6 billion in 2024, recording 11.1% growth YoY.

The Indian software product industry is projected to reach US$ 100 billion by 2025. IT export revenues stood at US$ 199 billion in FY24, led by services (53%), BPM (22%), and engineering & software products (25%). The workforce reached 5.4 million, with 2.9 lakh new jobs added in FY23.

India’s IT industry is expected to touch US$ 350 billion by 2026, contributing 10% to GDP. Foreign investments surged, with FDI in software and hardware totalling US$ 102.9 billion from April 2000 to March 2024, making it the second-highest recipient sector with a 15.6% share.

Virtual Galaxy Infotech Limited IPO – Type of Offer

Virtual Galaxy Infotech Limited is coming up with an IPO with a fresh issue of 65,70,000 shares worth INR 93.29 crores. The company aims to set up an additional development facility, repay or prepay certain borrowings, invest in procuring GPUs, and fund business development and corporate purposes. 

Virtual Galaxy Infotech IPO Offer Size

The offer size of Virtual Galaxy Infotech Limited is INR 93.29 crores, consisting of a fresh issue of 65,70,000 shares. The company aims to set up an additional development facility, repay or prepay certain borrowings, invest in procuring GPUs, and fund business development and corporate purposes. 

Virtual Galaxy Infotech Limited IPO Allotment Structure

Virtual Galaxy Infotech Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 

● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs 2 lakhs.

● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

● Market Maker Reservation: A portion of shares, i.e. 3,36,000 shares, is reserved for market makers. 

How to apply for the Virtual Galaxy Infotech IPO?

To apply for the Virtual Galaxy Infotech Limited IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the Virtual Galaxy Infotech Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Virtual Galaxy Infotech Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How do you check Virtual Galaxy Infotech IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Virtual Galaxy Infotech Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Virtual Galaxy Infotech Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance. 

Apart from Alice Blue, there are other ways to check the allotment status of the Virtual Galaxy Infotech Limited IPO:

● Registrar’s Website: Visit the website of Maashitla Securities Limited, the registrar of the Virtual Galaxy Infotech Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status. 

● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange Small and Medium Enterprises (NSE SME). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

Virtual Galaxy Infotech Ltd IPO Offer Registrar

The registrar for the Virtual Galaxy Infotech Limited IPO is Maashitla Securities Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar:

Maashitla Securities Private Limited

451, Krishna Apra Business Square, 

Netaji Subhash Place, Pitampura,

Delhi-110034

Tel No: +91 -11-4512-1795;

Email: [email protected]

Website: www.maashitla.com

Virtual Galaxy Infotech IPO – FAQs