Virtual Galaxy Infotech Limited, headquartered in Nagpur and established in 1997, is a technology company specializing in SaaS products and IT solutions for the BFSI, ERP, and e-governance sectors. The company offers core banking software, ERP implementation, and a range of custom IT services, serving over 5,000 bank branches and businesses with a team of more than 300 professionals. The Virtual Galaxy Infotech IPO, opening on May 9, 2025, aims to raise ₹93.29 crores through a fresh issue of shares priced at ₹135 – ₹142 each, listing on NSE SME.
₹100
₹142
₹180
Expert Opinions
The Virtual Galaxy Infotech IPO enters a bullish market for IT SaaS firms, fueled by digital transformation trends and Virtual Galaxy’s FY2024 revenue surge to ₹63.58 crores (up 6.4% YoY) and PAT of ₹16.54 crores-a dramatic turnaround from prior years. Strengths include a diversified product portfolio (core banking software, ERP solutions), a ₹47+ crore order book, and international reach across Tanzania and Malawi. However, risks stem from inconsistent historical profitability (average performance pre-FY2024), sector concentration in BFSI (80% revenue), though IPO proceeds aim to reduce leverage.
Valuation metrics for FY2024 appear robust, with ROE of 53.52% and ROCE of 31.68%, but the ₹25.09 NAV implies a premium Price-to-Book range of 5.4x–5.66x, demanding scrutiny of earnings sustainability. Long-term prospects hinge on scaling its Nagpur development facility, maintaining high PAT margins (26.04%), and capitalizing on India’s SaaS growth. While the company’s sudden profit leap raises questions, its focus on high-margin managed services and R&D investments positions it favorably for investors with a 3–5 year horizon, contingent on execution risks and global IT spending trends.
Investor Considerations
Virtual Galaxy Infotech IPO has delivered a standout FY2024 performance, with revenue reaching ₹63.58 crores and a sharp rise in profitability, reflected in its RoNW of 39.95% and a strong EPS of ₹10.02. The company’s EBITDA margin of 49.38% signals efficient operations and healthy cash flows. The SaaS sector outlook is highly favorable, with the Indian market projected to grow rapidly, driven by AI adoption, digital transformation, and increasing demand from BFSI and government clients.
Despite these strengths, the company’s growth prospects hinge on continued innovation and scaling its solutions for broader markets. Key risks include historical earnings volatility and sector concentration, which could impact consistency. For investors, short-term gains may be volatile post-listing, while long-term goals could be rewarded if Virtual Galaxy sustains its operational momentum and capitalizes on sector tailwinds. Careful monitoring of execution and sector trends is advised for both horizons.
| Date | GMP | Trend |
|---|---|---|
| 18 May 2025 12.09 | ₹100 | --- |
| 17 May 2025 11.33 | ₹100 | Up |
| 16 May 2025 10.25 | ₹80 | --- |
| 15 May 2025 13.35 | ₹80 | Down |
| 14 May 2025 15.26 | ₹90 | Up |
| 13 May 2025 16.00 | ₹80 | Up |
| 12 May 2025 15.45 | ₹75 | Up |
| 10 May 2025 11.12 | ₹8 | --- |
| 09 May 2025 10.57 | ₹8 | --- |
| 08 May 2025 19.10 | ₹8 | Up |
| 07 May 2025 11.16 | ₹00 | --- |
| 06 May 2025 11.45 | ₹00 | --- |
FAQs
The Grey Market Premium showed poor accuracy in predicting Virtual Galaxy Infotech’s listing performance. While the GMP of ₹100 predicted a substantial premium of 70.42% over the issue price, the stock delivered a more modest gain of 26.76%. With a significant prediction error of 25.62%, the GMP correctly predicted the positive listing direction but substantially overestimated the magnitude of gains, demonstrating its limitations as a reliable price predictor in this case.
Virtual Galaxy Infotech IPO Current GMP is ₹100.
Virtual Galaxy Infotech IPO Expected Returns is 70.42%.
Virtual Galaxy Infotech IPO estimated listing price is ₹242.