Virtual Galaxy Infotech IPO subscribed over 200 times at close. GMP robust at 53%. Check details

Virtual Galaxy Infotech's initial public offering (IPO) has garnered strong investor interest, with the issue being subscribed by over 220 times on Day 4, the final day of the bidding process. The grey market premium (GMP) of the company’s shares also stands robust at 53% or Rs 75-80.

The robust subscription levels and significant GMP indicate strong investor demand, suggesting potential listing gains for the IPO. The GMP indicates the expected listing price of the IPO shares based on market demand.

GMP refers to the price at which shares of an IPO are traded in the unofficial or grey market before they are officially listed on the stock exchange. Hence, if the GMP is positive, it suggests that investors expect the stock to list at a premium to the issue price. Conversely, a negative GMP indicates anticipated listing losses.


A higher GMP typically indicates a strong demand and potential listing gains. It reflects investor sentiment and market perception of the IPO's valuation. It helps investors gauge listing day volatility and decide whether to hold or sell the shares on listing.

A strong GMP can influence the decision to apply for the IPO or increase the investment size to capitalize on listing gains.

However, it should be noted that GMP alone is not a decisive factor as to whether an investment should be made in the IPO or not.

Virtual Galaxy Infotech IPO subscription status

The non-institutional investor (NII) category witnessed an overwhelming response with a subscription of over 91 times, while the retail category was subscribed nearly 43 times. Qualified institutional buyers (QIBs) subscribed over 3 times.

About Virtual Galaxy Infotech IPO

The IPO consists of a fresh issuance of 6.57 million equity shares, aiming to raise Rs 93.29 crore. The price range is set at Rs 135 to Rs 142 per share, with a lot size of 1,000 shares, requiring a minimum investment of Rs 1,42,000.

The funds raised through the IPO will be allocated for capital expenditure, including the establishment of a new development facility in Nagpur, Maharashtra, repayment of specific borrowings, acquisition of GPUs and server systems for data centers, enhancement and maintenance of existing products, hiring of manpower, business development, marketing activities, and general corporate purposes.

About Virtual Galaxy Infotech

Established in 1997, Virtual Galaxy Infotech specializes in SaaS-based solutions, offering core banking software, IT services, ERP implementation, and tailored software development.

The company caters to sectors including BFSI, ERP, and e-governance, providing comprehensive services from development to post-implementation support. It has earned a reputation for delivering robust and scalable software solutions to a diverse client base over the years.

Virtual Galaxy Infotech’s financial performance

Financially, the company has demonstrated strong growth, with revenue increasing to Rs 63 crore in FY24. Profit after tax (PAT) also saw a significant rise, from Rs 40 lakh in FY22 to Rs 16.5 crore in FY24.

Virtual Galaxy Infotech IPO key dates

The IPO allotment is scheduled to be finalized on May 15, with shares set to be credited to demat accounts on May 16, followed by the listing on the NSE SME platform on May 19.

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