New Delhi, May 19 (HS): The shares of IT services consulting firm Virtual Galaxy Infotech made a spectacular entry into the stock market today, delighting its IPO investors. The company’s shares were issued at a price of ₹142. Today, they debuted on the NSE’s SME platform at a level of ₹180, representing a premium of 26.76 percent. Shortly after listing, with buying support, the stock surged to reach the upper circuit level of ₹189. Thus, in the very first day of trading, the company’s IPO investors saw a profit of approximately 33.10 percent.

Virtual Galaxy Infotech’s IPO, worth ₹93.29 crore, was open for subscription from May 9 to 14. This IPO received a tremendous response from investors, leading to an overall subscription of 231.45 times. The reserved portion for Qualified Institutional Buyers (QIB) was subscribed 129.72 times. Similarly, the reserved portion for Non-Institutional Investors (NII) saw a subscription of 590.27 times. Additionally, the reserved portion for retail investors was subscribed 134.03 times. Under this IPO, a total of 6.57 million new shares with a face value of ₹10 were issued.

The funds raised through the IPO will be used by the company to set up additional development facilities in Nagpur, repay old debts, install servers and storage systems at the data center, and for general corporate purposes.

Regarding the company’s financial position, according to claims made in the prospectus, its financial health has continuously strengthened. In the fiscal year 2021-22, the company reported a net profit of ₹40 lakh, which increased to ₹72 lakh in the following fiscal year 2022-23 and reached ₹16.54 crore in 2023-24. During this period, the company’s revenue grew at a compound annual growth rate (CAGR) of over 21 percent, reaching ₹63.58 crore.

Hindusthan Samachar / Indrani Sarkar