Virtual Galaxy Infotech Files for IPO to Boost Expansion

Virtual Galaxy Infotech Ltd plans to raise funds through an IPO. The Nagpur-based SaaS firm will issue 66 lakh shares, aiming to raise Rs 34.26 crore for development facilities in Nagpur, product enhancement, marketing, and other expenses. Previously, it secured Rs 21.44 crore in pre-IPO funding.

Virtual Galaxy Infotech Ltd, a SaaS company with a focus on the BFSI sector, announced plans to proceed with an Initial Public Offering (IPO) by filing draft papers with NSE Emerge.

The Nagpur-headquartered firm intends to distribute 66 lakh equity shares, each valued at Rs 10, as part of its expansion strategy. Proceeds from the IPO, totaling Rs 34.26 crore, are earmarked for establishing additional development facilities in Nagpur, enhancing and upgrading existing products, and boosting business development and marketing efforts.

The company will also allocate Rs 5.05 crore for procuring necessary hardware for its data center and Rs 3 crore to reduce debt. In July, Virtual Galaxy Infotech obtained Rs 21.44 crore through a pre-IPO funding round from leading investors. The company, known for its software solutions in the BFSI, ERP, and E-Governance sectors, reported Rs 71.6 crore in operational revenue with a PAT of Rs 18.9 crore for the first half of the fiscal year ending September 2024.

(With inputs from agencies.)