The much-anticipated initial public offering (IPO) for Virtual Galaxy Infotech, a prominent player in the IT services sector, officially launched for public subscription on May 9 and will remain open until May 14. This ₹93 crore SME IPO consists entirely of a fresh issue, totaling approximately 66 lakh shares. However, initial responses have been lukewarm, with current trends in the grey market suggesting a modest listing premium of around 4%.
Subscription Insights
As of 11:30 AM on the opening day, the IPO had garnered a mere 4% subscription rate. Breaking it down further:
- Retail Investors: 7% of the allocated shares have been subscribed.
- Non-Institutional Investors (NIIs): Only 1% of their quota has been filled.
- Qualified Institutional Buyers (QIBs): This segment has yet to see any subscriptions.
Key Details About the IPO
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Grey Market Premium (GMP): Current market analysis indicates that the GMP for Virtual Galaxy Infotech shares stands at ₹6, suggesting a potential listing price at a 4.23% premium.
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IPO Timeline: The subscription period commenced on May 9 and concludes on May 14.
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Price Range: The price band for this public issue has been set between ₹135 and ₹142 per equity share.
- Funding Goals: The company aims to raise around ₹93.29 crore, which will be allocated to various initiatives, including the development of a new facility in Nagpur, repayment of debts, and investment in essential technology infrastructure such as GPU, servers, and storage systems.
This IPO presents an intriguing opportunity for investors, though the initial reception may raise questions about its future performance. As the situation evolves, stay tuned for further updates on this unfolding financial story.
