🏢 Company Overview
- Founded: 1997, Nagpur, Maharashtra
- Business Model: Hybrid SaaS and enterprise software solutions
- Focus Sectors: Banking, Financial Services, and Insurance (BFSI), Enterprise Resource Planning (ERP), and e-Governance
- Key Products: Core banking platform “E-Banker”, ERP solutions, and customized software for government and financial institutions
- Client Base: Over 150 clients including banks, NBFCs, and government bodies across 20 Indian states and East Africa
- Team: Approximately 300 professionals as of March 31, 2024
- Promoters: Avinash Narayanrao Shende and Sachin Purushottam Pande
- Merchant Banker: Smart Horizon Capital Advisors Pvt. Ltd.
📅 IPO Timeline
- IPO Open Date: May 9, 2025
- IPO Close Date: May 14, 2025
- Allotment Date: May 15, 2025
- Listing Date: May 19, 2025 (NSE SME platform)
- Price Band: ₹135 – ₹142 per share
- Lot Size: 1,000 shares (Minimum investment: ₹1,35,000)
- Issue Size: ₹93.29 crore (entirely fresh issue of 65.7 lakh shares)
- Face Value: ₹10 per share
- Anchor Investment: ₹26.1 crore raised from institutional investors on May 8, 2025
💰 Use of IPO Proceeds
- ₹34.27 crore: Development of a new facility in Nagpur
- ₹21.44 crore: Pre-IPO funding round
- Remaining Funds: Investment in data center infrastructure (GPU, servers, storage), product enhancement through manpower hiring, business development, marketing, and general corporate purposes
📈 Financial Performance
Key Financial Metrics (₹ in Crores)
| Period | Revenue | PAT | EBITDA Margin | PAT Margin | ROE | ROCE |
|---|---|---|---|---|---|---|
| FY22 | 42.62 | 1.26 | 23.67% | 2.97% | 5.67% | 9.43% |
| FY23 | 58.48 | 1.79 | 22.26% | 3.07% | 7.56% | 11.30% |
| FY24 | 61.46 | 16.30 | 50.38% | 26.52% | 49.72% | 30.53% |
| 9M FY25 (Annualized) | 101.25 | 27.41 | N/A | 26.04% | 53.52% | 31.68% |
Note: FY24 and 9M FY25 figures are based on restated financials as per the Draft Red Herring Prospectus (DRHP).
🔍 Industry & Peer Comparison
- Sector: Fintech Software & IT Solutions
- Peers:
- Veefin Solutions
- Network People Services Tech
- Trust Fintech Ltd
Comparison Highlights (FY24):
- EBITDA Margin: VGIL at 50.38%, higher than peers
- Return on Equity (ROE): VGIL at 49.72%, indicating efficient use of equity capital
- PAT Margin: VGIL improved to 26.52%, showcasing enhanced profitability
✅ Strengths
- Established Track Record: Over 26 years of experience in the IT solutions domain
- Diverse Client Base: Serving BFSI, ERP, and e-Governance sectors
- Proprietary Products: In-house developed software solutions
- Strong Financial Growth: Significant improvement in profitability and return ratios in recent years
- Strategic Expansion: Planned investment in infrastructure and human resources to support growth
⚠️ Risks & Concerns
- Client Concentration: Dependence on a limited number of clients could impact revenue stability
- Regulatory Changes: Alterations in banking or IT regulations may affect operations
- Geographical Concentration: Limited international presence may pose growth challenges
- Working Capital Cycle: Longer cycles could affect liquidity
📊 Valuation Metrics
- Earnings Per Share (EPS): ₹9.88 (FY24)
- Price-to-Earnings (P/E) Ratio: 13.8x (based on upper price band of ₹142)
- Net Asset Value (NAV): ₹37.22 per share
Note: Valuation metrics are based on restated financials and the upper end of the price band.
📌 Final Summary
| Parameter | Details |
|---|---|
| Company | Virtual Galaxy Infotech Ltd |
| Issue Size | ₹93.29 crore |
| Price Band | ₹135 – ₹142 per share |
| IPO Dates | May 9 – May 14, 2025 |
| Lot Size | 1,000 shares |
| Listing Exchange | NSE SME |
| FY24 Revenue | ₹61.46 crore |
| FY24 Net Profit | ₹16.30 crore |
| FY24 P/E Ratio | 13.8x |
| Anchor Investment | ₹26.1 crore |
📌 Disclaimer
This analysis is based on publicly available information from the Draft Red Herring Prospectus (DRHP) and other reliable sources. It is intended for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence before making investment decisions.