Virtual Galaxy Infotech Limited (VGIL), a Nagpur-based hybrid SaaS and enterprise software company, is launching its Virtual Galaxy Infotech Limited IPO on the NSE Emerge platform. Below are the key details:
IPO Timeline
- Issue Opens: May 9, 2025
- Issue Closes: May 14, 2025
- Allotment Finalization: May 15, 2025
- Refund Initiation: May 16, 2025
- Shares Credited to Demat: May 16, 2025
- Listing Date: May 19, 2025 B
IPO Details
- Total Issue Size: ₹93.29 crore
- Price Band: ₹135 to ₹142 per share
- Face Value: ₹10 per share
- Lot Size: 1,000 shares
- Minimum Investment: ₹1,42,000
- Issue Type: Book Building (SME IPO)
- Listing Exchange: NSE Emerge
Virtual Galaxy Infotech Limited IPO Share Price
The Virtual Galaxy Infotech Limited (VGIL) Initial Public Offering (IPO) is scheduled to open for subscription from May 9 to May 14, 2025.
The IPO is priced in the range of ₹135 to ₹142 per equity share, with a face value of ₹10 each. This price band translates to a floor price of 13.5 times and a cap price of 14.2 times the face value of the equity shares.
The IPO comprises a fresh issue of 65.70 lakh equity shares, aiming to raise capital for various strategic initiatives, including setting up an additional development facility in Nagpur, repayment of certain borrowings, procurement of high-end GPU servers and storage systems, enhancement and maintenance of existing products, business development, and marketing activities.
Promoters of Virtual galaxy infotech limited
The promoters of Virtual Galaxy Infotech Limited (VGIL) are:
- Avinash Narayanrao Shende
- Sachin Purushottam Pande
These individuals have been instrumental in founding and steering the company since its inception in 1997. Their combined shareholding before the IPO stood at 87.95%. Post-IPO, their collective stake is expected to decrease to 64.70%, reflecting the dilution due to the public offering.
Mr. Avinash Narayanrao Shende
Current Roles:
- Chairman and Chief Financial Officer (CFO) at Virtual Galaxy Infotech Ltd.
Director at multiple companies, including:
- Virtual Galaxy Insurance Brokers Pvt Ltd.
- Virtual Galaxy Fintech Pvt Ltd.
- Paynext Pvt Ltd.
- SIP Fund Pvt Ltd.
- Anupamtantra Technologies Pvt Ltd.
- Quintet Corps Pvt Ltd.
- Agriculture Product Multi Commodity Market India Pvt Ltd.
Educational Background:
- MBA from the Institute of Advanced Studies in Education.
Experience:
- Over 26 years in the IT and fintech sectors, focusing on delivering secure core banking solutions and integrated financial ecosystems.
Mr. Sachin Purushottam Pande
Current Roles:
- Director at Virtual Galaxy Infotech Ltd.
Director at:
- Virtual Galaxy Insurance Brokers Pvt Ltd.
- Virtual Galaxy Fintech Pvt Ltd.
Experience:
- Co-founded VGIL in 1997 alongside Mr. Shende.
- Has played a pivotal role in developing and implementing VGIL’s flagship products, such as E-Banker and IBS-ERP, catering to various sectors including banking, agriculture, and government organizations.
Virtual galaxy infotech limited IPO Lot Size
| Application | Lots | Shares | Amount |
| Retail (Minimum) | 1 | 1,000 | ₹1,42,000 |
| Retail (Maximum) | 1 | 1,000 | ₹1,42,000 |
| HNI (Minimum) | 2 | 1,000 | ₹2,84,000 |
Virtual Galaxy Infotech limited IPO Promoter Holding
| Shareholding Stage | Promoter Holding (%) |
|---|---|
| Pre-IPO | 87.95% |
| Post-IPO | 64.70% |
This indicates that the promoters have diluted approximately 23.25% of their stake through the IPO process.
Core Offerings
VGIL specializes in providing end-to-end technology solutions, including:
- E-Banker: A comprehensive core banking solution tailored for banks and NBFCs.
- IBS-ERP: An Enterprise Resource Planning system integrating finance, HR, manufacturing, and supply chain operations.
- E-APMC: A specialized platform for Agricultural Produce Market Committees.
- V-Pay: A full-stack digital payment solution.
- E-Autopsy: A unique solution designed for post-mortem departments.
- V-SOC: A 24/7 cybersecurity operations center.
- Data Center Services: Cloud, Disaster Recovery, and more.
Global Presence
VGIL has expanded its footprint beyond India, serving clients in countries such as:
- Malawi
- Tanzania
- Sierra Leone
- Botswana
- Ethiopia
- Israel
Virtual Galaxy Infotech Limited Financial Information
Certainly! Here’s a detailed overview of the financial performance of Virtual Galaxy Infotech Limited (VGIL), based on the latest available data:
| Particulars | FY 2023–24 | FY 2022–23 | FY 2021–22 |
|---|---|---|---|
| Revenue | ₹63.58 Crores | ₹59.76 Crores | ₹43.44 Crores |
| Profit After Tax (PAT) | ₹16.54 Crores | ₹0.72 Crores | ₹0.40 Crores |
| Net Worth | ₹41.40 Crores | ₹20.40 Crores | ₹20.14 Crores |
| Reserves & Surplus | ₹30.40 Crores | ₹9.40 Crores | ₹9.14 Crores |
| Total Borrowings | ₹38.64 Crores | ₹38.85 Crores | ₹35.56 Crores |
Key Financial Highlights
- Revenue Growth: VGIL has demonstrated consistent revenue growth over the past three fiscal years, with a notable increase in 2023–24.
- Profitability: The company reported a significant rise in Profit After Tax (PAT) in 2023–24, reflecting improved operational efficiency and market expansion.
- Net Worth & Reserves: Substantial growth in net worth and reserves indicates a strong financial foundation, supporting future business initiatives and expansion plans.
- Borrowings: Total borrowings have remained relatively stable, suggesting prudent financial management and a balanced approach to leveraging debt for growth.
Key Performance Indicator (KPI)
Here are some Key Performance Indicators (KPIs) for Virtual Galaxy Infotech Limited (VGIL), based on their financial performance and business activities:
| KPI | Value | Description |
|---|---|---|
| Revenue Growth | ₹63.58 Crores (FY 2023-24) | Reflects the year-over-year increase in revenue, showing the company’s growth trajectory. |
| Profit After Tax (PAT) | ₹16.54 Crores (FY 2023-24) | Demonstrates VGIL’s profitability and how much the company earns after all expenses. |
| Net Worth | ₹41.40 Crores (FY 2023-24) | Represents the total assets minus liabilities, reflecting the financial strength of the company. |
| Operating Profit Margin (OPM) | 25.9% (FY 2023-24) | This margin shows the profitability of VGIL’s core business activities, excluding overheads. |
| Return on Equity (ROE) | 39.9% (FY 2023-24) | Indicates how efficiently VGIL uses shareholders’ equity to generate profit. |
| Debt-to-Equity Ratio | 0.93 (FY 2023-24) | Shows the proportion of debt used to finance the company’s assets, indicating financial leverage. |
| Reserves & Surplus | ₹30.40 Crores (FY 2023-24) | Demonstrates the retained earnings and surplus profits reinvested into the company. |
| EBITDA | ₹25.40 Crores (FY 2023-24) | Earnings before interest, taxes, depreciation, and amortization, which reflects operational profitability. |
| Employee Growth | 329 Employees (FY 2023-24) | Reflects the growth in workforce, showing the company’s scaling up to meet market demands. |
Financial Performance
- Revenue: ₹63.58 Crores (an increase from ₹59.76 Crores in FY 2022-23)
- Profit: VGIL has demonstrated strong profitability with a significant jump in Profit After Tax (PAT).
- Operating Profit Margin (OPM): 25.9%, highlighting a healthy operating margin.
- Return on Equity (ROE): 39.9%, demonstrating efficient use of shareholder capital.
Business Operations
- Employee Strength: A steady increase in the number of employees reflects VGIL’s expansion in operations and market presence.
- Reserves: Growing reserves are indicative of strong internal funding for business growth and product development.
Objects of the Issue
1) Setting up an Additional Development Facility in Nagpur:
- The company aims to enhance its infrastructure by establishing a new development center to support future growth and scalability. This will help the company in catering to increasing demand and expanding its operations.
2) Repayment of Certain Borrowings:
- A portion of the IPO proceeds will be used to reduce the company’s existing debt. This will improve the financial health of the company by lowering its interest burden and enhancing its liquidity.
3) Procurement of High-End GPU Servers and Storage Systems:
- VGIL plans to invest in advanced technology, including high-end GPU servers and storage systems. This investment will enable the company to boost its computing power for more complex tasks, particularly in areas such as data processing, machine learning, and digital services.
4) Enhancement and Maintenance of Existing Products:
- The funds will be utilized to improve and maintain VGIL’s current software products, ensuring they stay competitive and continue to meet customer needs effectively.
5) Business Development and Marketing Activities:
- VGIL plans to allocate a portion of the proceeds to expand its business development and marketing efforts. This will help the company reach new clients and grow its presence in both domestic and international markets.
These objectives are part of the company’s strategy to strengthen its operations, improve profitability, and enhance its market position.
Strengths of Virtual Galaxy Infotech Limited IPO
- Established Market Position: VGIL has over 27 years of experience providing integrated software solutions to the BFSI sector, including core banking systems, ERP solutions, and digital payment platforms.
- Diversified Client Base: The company serves a wide range of clients across various sectors, including commercial banks, cooperative banks, NBFCs, and government entities like the Maharashtra Labour Welfare Board and Maharashtra State Agricultural Marketing Board (MSAMB).
- Recurring Revenue Model: VGIL benefits from recurring revenues through annual maintenance contracts (AMCs), SaaS subscriptions, and technical support services, ensuring a stable income stream.
- Strong Financial Performance: The company has demonstrated consistent revenue growth, with revenue increasing from ₹43.44 crore in 2021–22 to ₹63.58 crore in 2023–24. Profit After Tax (PAT) also rose from ₹0.40 crore to ₹16.54 crore during the same period.
- ISO Certifications: VGIL holds ISO 9001:2015, ISO/IEC 27001:2013, ISO/IEC 20000-1:2018, and ISO/IEC 23001-7:2023 certifications, reflecting its commitment to quality management, information security, IT service management, and disaster recovery.
Risks of Virtual Galaxy Infotech Limited IPO
- Revenue Concentration: A significant portion of VGIL’s revenue depends on a few key clients, particularly those using its core banking solution, e-Banker. Losing any of these clients could adversely affect the company’s financial performance.
- Geographical Concentration: The company generates a substantial part of its revenue from the Maharashtra region. Any adverse developments in this region could impact VGIL’s business operations.
- Dependence on Competitive Bidding: VGIL relies on winning competitive bids for new projects. Failure to secure such projects could hinder its growth prospects and financial stability.
- Working Capital Requirements: The company has significant working capital needs. Any inability to maintain adequate working capital could affect its operations and future growth.
Virtual Galaxy Infotech Limited IPO Contact Details
Head Office (Nagpur)
- Address: 3, Central Excise Colony, Behind Mahatme Eye Bank, Chhatrapati Square, Ring Road, Nagpur – 440015, Maharashtra, India
- Phone: +91 92265 31342
- Email: investors@vgipl.in
- Website: www.vgipl.com
General Inquiries
- Email: info@vgipl.in
- Presales: presales@vgipl.in
- Human Resources: hr@vgipl.in
Virtual Galaxy Infotech IPO Registrar
Maashitla Securities Pvt. Ltd.
- Address: 451, Krishna Apra Business Square, Netaji Subhash Place, Pitampura, Delhi – 110034
- Phone: 011-45121795 / 45121796
- Email: investor.ipo@maashitla.com
- Website: www.maashitla.com
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