A Galaxy of Opportunities or Just Another IPO?
Imagine a small IT firm in Nagpur that quietly built software for over 5000 bank branches and is now knocking on the doors of NSE. That’s not fiction — that’s Virtual Galaxy Infotech Limited, a company that’s grown steadily over the past two decades and is now making a bold move into the public market.
But should you jump on the IPO train or stay on the platform? Let’s unpack the Virtual Galaxy Infotech IPO story — in plain English, with numbers that make sense, and logic you can follow.
What’s the Virtual Galaxy Infotech IPO All About?
| Details | Info |
|---|---|
| IPO Open Date | May 9, 2025 |
| IPO Close Date | May 14, 2025 |
| Price Band | ₹135 – ₹142 per share |
| Issue Size | ₹93.29 crores (100% fresh issue) |
| Lot Size | 1000 shares |
| Listing Exchange | NSE SME |
| Allotment Date | May 15, 2025 |
| Listing Date | May 19, 2025 |
This IPO is fully fresh — meaning all the ₹93.29 crores raised will directly go into the company’s future plans, not into the pockets of early investors or promoters. That’s already a green flag for long-term value seekers.
The Brains Behind the Galaxy
Promoters Avinash Narayanrao Shende and Sachin Purushottam Pande have been steering this ship since 1997. Over the years, the company has turned from a modest tech provider into a reliable IT partner for government and private clients in BFSI, ERP, and e-Governance sectors.
If you’ve ever used banking software at a regional branch, there’s a good chance it might be powered by their backend.
Is the Financial Track Record Solid?
Let’s look at what truly matters — the numbers. Because hype without revenue is just hot air.
| Period | Revenue (₹ Cr) | Profit (₹ Cr) | Assets (₹ Cr) |
|---|---|---|---|
| FY 2022 | ₹43.44 | ₹0.40 | ₹67.80 |
| FY 2023 | ₹59.76 | ₹0.72 | ₹84.36 |
| FY 2024 | ₹63.58 | ₹16.54 | ₹116.93 |
| Dec 2024 (9M) | ₹101.37 | ₹27.42 | ₹146.03 |
What’s interesting?
- The company jumped from ₹0.72 crore profit in FY23 to ₹16.54 crore in FY24.
- That’s not just good — it’s staggering. A 20x leap.
- And it seems more than just accounting tricks — revenue and assets are climbing too.
Key Valuation Metrics You Should Know
| Metric | Value |
|---|---|
| EPS | ₹10.02 |
| Return on Net Worth (RoNW) | 39.95% |
| ROE | 53.52% |
| EBITDA Margin | 49.38% |
| PAT Margin | 26.04% |
| Debt-to-Equity | 0.93 |
These are the kind of numbers that turn heads. An RoNW close to 40%? That’s elite-tier — especially for an SME IPO. Even the debt level is under control.
Where Will the IPO Money Go?
Virtual Galaxy isn’t raising money just to chill on a pile of cash. Here’s how they plan to use the ₹93.29 crores:
- Build a new development center in Nagpur
- Buy GPUs, servers, and other infrastructure for their data center
- Repay some loans (good for reducing debt burden)
- Upgrade and maintain current software products
- Invest in marketing and business expansion
👉 In short: They’re planning to grow, not just sustain.
How Does It Compare with Its Peers?
| Company | EPS | RoNW (%) | PE Ratio |
|---|---|---|---|
| Virtual Galaxy | ₹10.02 | 39.95 | N/A (not listed yet) |
| Veefin Solutions | ₹2.74 | 6.95 | 198.07 |
| Trust Fintech | ₹7.13 | 52.70 | 25.53 |
| Network People Services | ₹13.78 | 62.04 | 201.57 |
Compared to listed peers, Virtual Galaxy is offering strong returns and is still relatively undervalued. The PE ratio is still TBD, but chances are it will be much lower than its overvalued competitors.
Is This IPO Good for Retail Investors?
Let’s break it down:
Why You Might Apply:
- Strong profit growth (20x jump)
- Focused use of IPO proceeds
- High RoNW and decent balance sheet
- Government and BFSI clients = long-term demand
- Reasonable pricing considering peer valuation
Why You Might Skip:
- SME IPOs are less liquid post-listing
- ₹1.42 lakh minimum investment might be too high for small investors
- Sudden profit spike — is it sustainable?
Real-Life Analogy: Is This a “Tech Titan in the Making”?
Think of Virtual Galaxy like a mid-tier cricketer playing in Ranji Trophy who suddenly starts knocking at the doors of the national team. He’s not Rohit Sharma yet — but the recent performance hints he could be one day. That’s Virtual Galaxy right now.
Virtual Galaxy Infotech IPO Timeline
| Event | Date |
|---|---|
| Open | May 9, 2025 |
| Close | May 14, 2025 |
| Allotment | May 15, 2025 |
| Refunds | May 16, 2025 |
| Shares in Demat | May 16, 2025 |
| Listing | May 19, 2025 |
FAQs: Straight Answers for Google & You
Q1. What is the price band of Virtual Galaxy Infotech IPO?
₹135 to ₹142 per share.
Q2. What’s the minimum investment required?
₹1,42,000 (for 1000 shares — 1 lot).
Q3. When is the IPO allotment date?
May 15, 2025.
Q4. On which exchange will it be listed?
NSE SME.
Q5. Is it a fresh issue or OFS?
100% fresh issue — no Offer for Sale.