Market News
3 min read | Updated on May 07, 2025, 14:15 IST
SUMMARY
Virtual Galaxy Infotech IPO opens for subscription from May 9 to 14, aiming to raise ₹93.29 crore via SME route. IPO price band is ₹135–₹142 per share with a lot size of 1,000 shares. Net IPO proceeds will be used to open new development facility in Nagpur, IT upgrades, hiring, and debt repayment.
The company is led by Avinash Narayanrao Shende and Sachin Purushottam Pande.
Virtual Galaxy Infotech IPO will open for subscription on May 9 amid a sluggish response to recently listed IPOs. The IT service and consulting firm aims to raise ₹93.29 crore through its initial public offering. The IPO will remain open till May 14.
Virtual Galaxy Infotech aims to raise ₹93.29 crore through its SME IPO. The issue is 100% book-built and made up entirely of a fresh issuance of 65.7 lakh shares, with no offer-for-sale (OFS) component.
The company has fixed the price band of the issue at ₹135 to ₹142 per share. The lot size, or the minimum bid quantity to apply for the issue, is 1,000 shares. This equates to a minimum investment amount of over ₹1.42 lakh for retail investors (if bids are placed at the upper end of the price band) and ₹2.84 lakh for high networth investors (HNIs) as they need to bid for a minimum of 2 lots.
Virtual Galaxy Infotech has appointed Smart Horizon Capital Advisors as the book-running lead manager of the IPO, while Maashitla Securities Pvt. Ltd is the registrar for the issue. The market maker for the Rapid Fleet IPO is Alacrity Securities Ltd.
The Virtual Galaxy Infotech IPO will remain open for bidding from 9 to 14 May. After the bidding is closed, the allotment of shares is expected to be finalised on May 15.
Successful bidders can expect the shares to be credited to their demat accounts by May 16, with others receiving refunds on the same day. Virtual Galaxy Infotech shares are scheduled to list on the NSE Emerge platform on May 19.
Particulars | Estimated amount |
---|---|
Capital expenditure | ₹34.26 crore to set up additional development facility in Nagpur |
Repayment or prepayment of borrowings | ₹3 crore to repay or prepay some of its outstanding borrowings |
Capital expenditure towards IT upgradation | ₹5.05 cr to procure GPUs, server & storage systems at the data centre. |
Expenditure on manpower hiring | ₹18.90 cr to fund manpower hiring for maintenance and upgrading existing products. |
Business expansion | ₹14.06 cr to fund business development and marketing activities |
General corporate purposes | ₹18.02 crore towards its general corporate purposes. |
Virtual Galaxy Infotech, founded in 1997 in Nagpur, is a SaaS-focused company providing core banking software, ERP implementation, customised software development, and IT services across BFSI, ERP, and E-Governance domains. The company is led by Avinash Narayanrao Shende and Sachin Purushottam Pande. Its flagship product, E-Banker, serves banks, NBFCs, and cooperative societies through both on-premises and SaaS delivery models. The company offers end-to-end services including consultation, solution design, implementation, and maintenance through license and subscription-based models.
About The Author
Next Story