Virtual Galaxy IPO Analysis: Complete Guide to Subscription, GMP, Financials, and Listing Expectations

The Indian IPO market continues to showcase vibrancy and investor appetite in 2025, particularly in the SME segment. The latest entrant, Virtual Galaxy Infotech Limited, is gearing up to launch its public offering with the IPO opening on 9th May 2025. Backed by strong fundamentals, an evolving tech portfolio, and a robust order pipeline, Virtual Galaxy’s IPO has attracted investor interest due to its promising financial turnaround, impressive GMP trends, and strategic listing plans on the NSE SME platform.

This article offers a comprehensive deep-dive into the Virtual Galaxy IPO, examining every critical aspect—from key dates and financial health to technical valuations, GMP trends, promoter holdings, and expert investment outlook. It will enable investors to make informed decisions ahead of the IPO bidding window that closes on 14th May 2025.

1. Virtual Galaxy IPO Overview

The Virtual Galaxy IPO is a bookbuilding issue consisting of a fresh issue of 65,70,000 equity shares aggregating to ₹93.29 crores. The IPO price band is fixed between ₹135 and ₹142 per share, with a face value of ₹10 per share. Investors can bid for a minimum lot of 1,000 shares, amounting to ₹1,42,000 at the upper price band.

The IPO is aimed at achieving strategic goals such as infrastructure expansion, debt repayment, and marketing investments, all aligned with Virtual Galaxy’s growth agenda.

2. IPO Share Reservation Breakdown

The IPO follows the standard SME bookbuilding reservation pattern:

This structured allocation aims to ensure participation from all investor segments, with a focus on retail and NII engagement.

3. Virtual Galaxy GMP Trend and Listing Expectations

As of 8th May 2025, the Grey Market Premium (GMP) for Virtual Galaxy stands at ₹20, indicating strong listing sentiment. GMP provides an unofficial preview of the stock’s market demand ahead of listing and can be a vital leading indicator for retail investors.

Rising GMP signals growing investor interest and suggests potential for a premium listing on 19th May 2025.

4. Company Overview: Virtual Galaxy Infotech Limited

Incorporated in 1997, Virtual Galaxy Infotech Limited is a Nagpur-based IT services and consulting company. The firm offers technology-driven solutions in sectors such as Banking, Finance, ERP, E-Governance, Web Services, Big Data, Cloud Computing, and IoT.

With over 300 skilled professionals, the company delivers customizable and scalable software solutions catering to both private and government clients.

Key Strengths:

• Established brand with nearly 30 years of industry presence.

• Diversified services across mission-critical domains.

• Focus on innovation, AI integration, and cloud-native platforms.

5. Financial Highlights and Growth Trajectory

Virtual Galaxy’s financial performance in recent years underscores its remarkable turnaround. The company reported a PAT surge of over 2,100%, which has drawn substantial investor attention.

• Revenue Growth: 6.39% YoY from FY23 to FY24

• PAT Growth: 2,184.72% YoY (₹0.72 cr to ₹16.54 cr)

Despite modest revenue growth, PAT margins soared due to operational efficiencies and higher realization from premium projects.

6. Technical and Valuation Indicators

The PE ratio of 15.71 (Pre-IPO) reflects fair valuation considering industry peers. Strong RoNW and PAT margins support the firm’s operational strength.

7. Peer Comparison

Compared to peers in the SME and IT service segments, Virtual Galaxy holds a favorable valuation while boasting robust returns.

Inference: Virtual Galaxy’s PE is far lower than competitors, indicating room for upside if profit sustainability is maintained.

8. Promoter Holdings

The company’s promoters, Avinash Narayanrao Shende and Sachin Purushottam Pande, are experienced professionals with decades in software solutions. They hold 87.95% stake pre-issue, and post-issue holdings will dilute based on equity expansion but signify continued promoter control.

9. Use of IPO Proceeds

The primary objective behind raising ₹93.29 crores is strategic business expansion and optimization.

These investments will fortify Virtual Galaxy’s backend, helping it scale rapidly to meet new client demands.

10. Subscription Status (To be Updated Post Opening)

As of now, the IPO is yet to open. Post-9th May 2025, subscription data by investor categories (Retail, QIB, NII) will be released regularly, reflecting investor enthusiasm and demand trends.

11. Investment Outlook: Should You Apply?

Expert View (Dilip Davda – Chittorgarh Infotech):

“Virtual Galaxy posted average numbers till FY23 but reported a sudden jump in bottom lines in FY24. While the IPO appears fully priced based on recent performance, its financials and orders suggest potential. Well-informed investors may consider investing for medium to long-term.”

Pros:

• Significant jump in profits in FY24

• Reasonable valuations vs. peers

• Presence across high-growth tech segments

• Strong order book (~₹47 crore)

Cons:

• Sudden profit surge raises questions of sustainability

• SME stocks carry liquidity risks post-listing

• High retail lot size may limit participation

12. Application Process

Steps to Apply:

1. Open a Demat Account (if not already active)

2. Visit IPO section on your brokerage app or apply via ASBA through your bank

3. Enter the Virtual Galaxy IPO details (select price band, lot size)

4. Confirm and approve mandate request via UPI or net banking

5. Wait for allotment confirmation on 15th May 2025

Retail Investment Limits:

• Minimum: 1 lot = 1,000 shares = ₹1,42,000

• Maximum: 1 lot per PAN allowed under retail

13. Allotment and Listing Timeline

Allotment status can be checked via the NSE portal or the registrar’s website (Maashitla Securities).

14. Final Verdict

The Virtual Galaxy IPO emerges as a high-potential SME opportunity, backed by a solid FY24 performance, credible growth plans, and healthy financials. While its spectacular profit rise deserves scrutiny for sustainability, its moderate pricing, favorable GMP, and strong promoter reputation offer substantial comfort.

Conclusion:
Virtual Galaxy IPO may appeal to medium- to long-term investors with an appetite for SME exposure and informed risk. Conservative investors may adopt a wait-and-watch approach post-listing.

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