Virtual Galaxy Infotech IPO GMP, Dates, Price & Key Details
Are you considering investing in the upcoming Virtual Galaxy Infotech IPO? This article provides a comprehensive overview of the IPO, including the Grey Market Premium (GMP), important dates, price band, and other essential details.
Introduction to Virtual Galaxy Infotech Pvt Ltd
Founded in 1997 by Avinash Shende and Sachin Pande, Virtual Galaxy Infotech Pvt Ltd is a Nagpur-based fintech company specializing in hybrid SaaS and enterprise software solutions. The company serves over 200 financial institutions across India and Africa, offering products like E-Banker, V-Pay, and IBS ERP.
WHAT IS IPO ?
An Initial Public Offering (IPO) is when a private company offers its shares to the public for the first time. This process allows the company to raise capital from public investors and provides an opportunity for investors to become shareholders in the company.
Overview of Virtual Galaxy Infotech IPO
virtual galaxy infotech pvt ltd ipoTimeline and Key Dates
IPO Opening Date: May 9, 2025
IPO Closing Date: May 14, 2025
Allotment Finalization: May 15, 2025
Refund Initiation: May 16, 2025
Demat Account Credit: May 16, 2025
Listing Date: May 19, 2025
IPO Price Band and Lot Size
Price Band: ₹135 – ₹142 per share
Lot Size: 1,000 shares
Minimum Investment: ₹1,42,000
virtual galaxy infotech ipo GMP Insights
As of the latest available data, the Grey Market Premium (GMP) for Virtual Galaxy Infotech IPO is ₹0, indicating that the shares are trading at par with the upper price band of ₹142 in the grey market.
Objectives Behind the virtual galaxy infotech pvt ltd IPO
The company plans to utilize the IPO proceeds for:
Capital Expenditure: ₹34.27 crore for setting up a new development facility in Nagpur, Maharashtra.
Repayment/Prepayment of Borrowings: ₹3 crore.
Investment in Infrastructure: ₹5.05 crore for procuring GPU, server, and storage systems at the data center.
Product Enhancement: ₹18.90 crore for enhancement, maintenance, and upgrading existing products through manpower hiring.
Business Development and Marketing: ₹14.06 crore.
General Corporate Purposes.
Financial Snapshot of the Company
- For the first half of FY 2025 (ending September 30, 2024):
- Revenue from Operations: ₹71.6 crore
- Profit After Tax (PAT): ₹18.9 crore
- Revenue from Operations: ₹71.6 crore
Strengths of Virtual Galaxy Infotech Pvt Ltd
- Established Track Record: Operating since 1997 with a focus on the BFSI sector.
- Diverse Clientele: Serving over 200 financial institutions across India and Africa.
- Comprehensive Services: Offering end-to-end software solutions, including development, implementation, and support.
- Strategic Expansion Plans: Investing in infrastructure and product enhancement to support growth.
Potential Risks for Investors
Market Volatility: SME IPOs can be subject to higher market volatility.
Operational Risks: Dependence on key personnel and clients.
Competitive Industry: Operating in a highly competitive IT and software services sector.
Investment Considerations for Retail Investors
Retail investors should assess the IPO not just by hype but also by looking at financials, GMP trends, company strengths, and sector growth. The fintech space, especially for smaller financial institutions, is ripe for innovation, and Virtual Galaxy Infotech Pvt Ltd appears to be tapping into that niche smartly.
However, the high minimum investment amount (₹1.42 lakh) may limit accessibility. Consider your financial goals and risk appetite before applying.
Steps to Apply for the IPO
Applying for the IPO is simple:
- Log in to your trading app (Zerodha, Groww, Upstox, etc.).
- Go to the IPO section.
- Search for Virtual Galaxy Infotech IPO.
- Enter your bid quantity (in multiples of 1000).
- Submit your UPI ID and approve the payment request.
Wait for allotment updates via SMS or email.
Comparison with Recent IPOs
Virtual Galaxy Infotech stands apart from other recent SME IPOs due to its strong earnings, wide client base, and plans for expansion. While many IPOs are in traditional sectors like textiles or chemicals, this one’s pure-play tech focus may excite modern investors.
For instance, compared to other recent SME IPOs:
Stronger Revenue Growth: ₹71.6 crore in 6 months is impressive.
Targeted Sector: BFSI tech with real-world applications.
Strategic Use of Funds: Includes tech upgrades and hiring.
Market Sentiments and Expert Opinions
Experts remain cautiously optimistic. Analysts have pointed out:
- The company’s consistent growth and cash flow generation.
- The low GMP suggests a wait-and-watch approach by grey market investors.
- Listing on the NSE SME platform may mean lower liquidity but higher growth potential if the company performs well post-listing.
In short, this IPO might be a “slow burner” — not flashy on Day 1 but potentially valuable long-term.
Final Thoughts: Should You Invest?
To sum up, the Virtual Galaxy Infotech IPO is a promising opportunity in the niche yet rapidly expanding fintech sector. With solid financials, smart fund allocation, and experienced leadership, it ticks many investor boxes.
That said, SME IPOs carry risks — especially regarding liquidity and volatility. But if you believe in India’s digital finance revolution, this IPO might be worth a closer look.
Think of investing in this IPO like planting a seed in a growing forest — it might take time, but the right environment could yield impressive returns.
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FAQ'S
What is the GMP of Virtual Galaxy Infotech IPO?
As of the latest update, the GMP is ₹0, indicating neutral market sentiment before listing.
What is the opening and closing date of the IPO?
The IPO opens on May 9, 2025, and closes on May 14, 2025.
How much is the minimum investment in the Virtual Galaxy Infotech IPO Gmp?
The minimum investment is ₹1,42,000 for 1 lot (1,000 shares).
Where will the IPO be listed?
It will be listed on the NSE SME Platform.
Is Virtual Galaxy Infotech IPO a good investment?
It depends on your risk tolerance. The company has strong financials and sector potential, but SME IPOs come with higher volatility.
