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Virtual Galaxy Infotech, an IT services and consulting company based in Maharashtra, made its stock market debut today on the NSE SME platform. The shares were listed at ₹180 each, which is 26.7% higher than the issue price of ₹142 per share.
Before the listing, there was a lot of excitement about the shares in the grey market, where unlisted shares were trading at around ₹252. This price was much higher than the official listing price, showing a grey market premium (GMP) of about 77.5%. However, when the shares officially started trading on the stock exchange, the price opened lower than this expectation.
About the IPO and Subscription Details
Virtual Galaxy Infotech’s Initial Public Offering (IPO) aimed to raise ₹93.29 crore. The IPO was a fresh issue of 6.57 million shares, meaning all money raised from this sale will go directly to the company. There was no offer-for-sale (OFS) element, which means no existing shareholders sold their shares during the IPO.
The IPO was open for investors between May 9 and May 14, 2025. It was highly successful and oversubscribed by 231.45 times in total. This means the demand for shares was much higher than the shares available. Among different investor categories, non-institutional investors showed the highest interest with an oversubscription of 590.27 times. Retail investors and qualified institutional buyers (QIBs) also showed strong interest, with oversubscription levels of 134.03 times and 129.72 times respectively.
The price range for the shares was set between ₹135 and ₹142 per share. Retail investors had to bid for a minimum of 1,000 shares, which meant a minimum investment of around ₹1.42 lakh if bidding at the highest price band.
Maashitla Securities managed the share registration process, while Smart Horizon Capital Advisors acted as the lead manager for the IPO.
About Virtual Galaxy Infotech
Founded in September 1997, Virtual Galaxy Infotech is a software-as-a-service (SaaS) company. It focuses on providing core banking software, IT solutions, enterprise resource planning (ERP) implementation, customized software development, and other IT services.
The company serves several sectors such as banking, financial services and insurance (BFSI), ERP, and e-governance. Its clients include banks, microfinance institutions, and non-banking financial companies (NBFCs). Virtual Galaxy offers a wide range of services including software development, customization, installation, implementation, post-implementation support, monitoring, and maintenance.
The company’s leadership includes Avinash Narayanrao Shende and Sachin Purushottam Pande.
How the Company Plans to Use the IPO Funds
Since the IPO was a fresh issue, the entire amount raised will be used by the company for various business purposes. These include:
- Around ₹34.3 crore will be used to set up a new development facility in Nagpur, Maharashtra.
- ₹3 crore will be allocated to repay some existing loans or borrowings.
- ₹5.05 crore will be spent on upgrading IT infrastructure, such as buying GPUs, servers, and storage systems for the company’s data centre.
- ₹18.9 crore will go towards hiring more staff to help improve, maintain, and develop their current software products.
- ₹14.06 crore will be used for business development and marketing activities.
- The remaining amount, approximately ₹18 crore, will be used for general corporate purposes.
