Image Source: Business Standard
Virtual Galaxy Infotech, an IT and SaaS solutions company from Nagpur, has opened its SME IPO today, May 9, 2025. The IPO is generating interest for its capital raising motives, positioning in the market, and also for what investors can gain from investing in the booming technology space. Find below the crucial information and updates on Day 1 of the IPO.
IPO Overview
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Virtual Galaxy Infotech is seeking to raise ₹93.29 crore through a 100% fresh issue of 65.70 lakh shares and does not involve any offer-for-sale (OFS) portion.
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The public issue is for subscription from May 9 until May 14, 2025, listing anticipated on NSE SME (Emerge) platform on May 19, 2025.
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The firm is in the IT space, dealing in SaaS products, core banking software, ERP solutions, and IT consulting services to BFSI, ERP, and E-Governance spaces.
Price Band, Lot Size, and Investment
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Price band is ₹135 to ₹142 per share.
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Minimum application is of 1,000 shares with a minimum investment of ₹1,35,000 at the lower band and ₹1,42,000 at the higher band for retail investors.
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For HNIs, the minimum investment is ₹2,84,000 (two lots).
Subscription Status and Market Sentiment
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On Day 1, the IPO launched in a cautious market sentiment, following muted reactions to other recent SME IPOs.
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The grey market premium (GMP) was quoted at about ₹6 per share, reflecting a modest 4% premium over the issue price.
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Shares in the grey market were reported to be trading in the upper region of the price band, indicating steady though not frenzied demand.
Utilisation of Proceeds
The proceeds from the IPO will be used as follows:
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₹34.26 crore to establish an additional development centre at Nagpur.
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₹3 crore towards repayment/prepayment of certain borrowings.
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₹5.05 crore for enhancement of data centre infrastructure (GPUs, servers, storage).
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₹18.90 crore for recruitment of manpower for enhancing and upkeep of current products.
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₹14.06 crore towards business development and marketing.
Amount available for general corporate purposes.
Investor Categories and Allotment
Shares are to be allotted as under:
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50% to be reserved for Qualified Institutional Buyers (QIBs)
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35% to retail investors
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15% to Non-Institutional Investors (NIIs)
Allotment to be completed by May 15, 2025, with shares being credited to demat accounts on May 16.
Company Background
Established in 1997, Virtual Galaxy Infotech deals in SaaS-based core banking and IT solutions, with a flagship product "E-Banker" catering to banks, NBFCs, and cooperative societies.
The organization is headed by Avinash Narayanrao Shende and Sachin Purushottam Pande.
Sources: Economic Times, Business Standard, Goodreturns, Upstox Market News
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