Is Virtual Galaxy Infotech Ltd IPO Halal or Haram? Virtual Galaxy Infotech Ltd is a fintech company providing core banking software solutions and IT services, mainly for the BFSI (Banking, Financial Services & Insurance) sector. Its flagship products, including E-Banker and Loan Origination System (LOS), help manage loan processing and conventional lending systems, areas that typically involve interest (riba).
The Virtual Galaxy Infotech Ltd IPO is a book building issue of ₹93.29 crores, consisting entirely of a fresh issue of 65.70 lakh shares. The IPO opened for subscription on May 9, 2025, and will close on May 14, 2025.
The price band is set at ₹135 to ₹142 per share. The minimum lot size for retail investors is 1,000 shares, requiring an investment of ₹1,35,000 at the lower band and around ₹1,42,000 at the cutoff price. The IPO is proposed to be listed on the NSE SME platform with a tentative listing date of May 19, 2025.
Is Virtual Galaxy Infotech Ltd IPO Halal or Not?
As per Shariah screening analysis, while the company’s financial ratios fall within permissible limits under Shariah guidelines, the primary concern arises from its business activity. Over 90% of the company’s revenue is generated from providing software and IT services to conventional BFSI companies, which involve interest-based financial services and loan processing systems.
Due to this high exposure to interest-related businesses, the company’s core operations are considered doubtful from a Shariah compliance perspective. As a result, this IPO is classified as Not Halal (Non-Shariah Compliant). (Allah knows best.)
Refer to Virtual Galaxy Infotech IPO RHP for detailed information.
Shariah Compliance Analysis of Virtual Galaxy Infotech Ltd IPO
For an IPO or Stocks to be considered Halal, it must pass all the Shariah screening criteria, which include:
| Criteria | Value | Status |
| Business Activity | IT Sector | ❌ DOUBTFUL |
| Impermissible Income to Total Revenue | 0.11% | ✅ PASS |
| Interest-Bearing Debt to Total Assets | 17.01% | ✅ PASS |
| Illiquid Assets to Total Assets Ratio | 63.3% | ✅ PASS |
| Net Liquid Assets vs Market Capitalization | Compliant as per Shariah principles | ✅ PASS |
| Non-Compliant Investments to Total Assets | Less than 33% (Compliant) | ✅ PASS |
Business Overview – Virtual Galaxy Infotech Ltd
Virtual Galaxy Infotech Ltd (VGIL), established in 1997 and headquartered in Nagpur, Maharashtra, is a fintech company specializing in Hybrid SaaS and enterprise software solutions tailored for the banking and financial services sector.
With a client base exceeding 200 financial institutions across India and Africa, VGIL offers products such as the AI-powered ‘E-Banker’ core banking system, ‘V-Pay’ digital payment suite, and industry-specific ERP solutions.
The company has also executed e-governance projects for government bodies and completed World Bank-funded initiatives. In September 2024, VGIL transitioned to a public limited company and is preparing for an IPO to support further expansion and innovation.
Virtual Galaxy Infotech Ltd IPO Timeline
| IPO Opening Date | Fri, May 09, 2025 |
| IPO Closing Date | Wed, May 14, 2025 |
| Expected Allotment Date | Thu, May 15, 2025 |
| Refund Initiation | Fri, May 16, 2025 |
| Shares Credited to Demat | Fri, May 16, 2025 |
| Expected Listing Date | Mon, May 19, 2025 |
| UPI Mandate Confirmation Deadline | 5 PM on May 14, 2025 |
Virtual Galaxy Infotech Ltd IPO Price Details
| IPO Date | May 09, 2025 to May 14, 2025 |
| Expected Listing Date | Mon, May 19, 2025 |
| Face Value | ₹135 to per share |
| Issue Price | ₹135 to ₹142 per share |
| Lot Size | 1,000 Shares |
| Total Issue Size | 65,70,000 shares (aggregating up to ₹93.29 Cr) |
| Fresh Issue | 65,70,000 shares (aggregating up to ₹93.29 Cr) |
| Issue Type | Book-building IPO |
| Listing At | NSE SME |
| Pre-Issue Shareholding | 1,82,98,635 shares |
| Post-Issue Shareholding | 2,48,68,635 shares |
| Market Maker Portion | 3,36,000 shares |
Virtual Galaxy Infotech Ltd Financial Information (Restated)
| Period Ended | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
| Assets | 116.93 | 84.36 | 67.80 |
| Revenue | 63.58 | 59.76 | 43.44 |
| Profit After Tax | 16.54 | 0.72 | 0.40 |
| Net Worth | 41.40 | 20.40 | 20.14 |
| Reserves and Surplus | 30.40 | 9.40 | 9.14 |
| Total Borrowing | 38.64 | 38.85 | 35.56 |
| Amount in ₹ Crore | |||
Conclusion
Virtual Galaxy Infotech Ltd IPO is considered Non-Shariah Compliant. While the company’s financials are within the Shariah screening guidelines, its core business activity is deemed doubtful, as over 90% of its revenue is generated from providing core banking software and IT solutions to the BFSI sector, which predominantly involves interest-based (riba) transactions.
Investors are advised to exercise caution, perform their own due diligence, and regularly review the company’s financial and business activities for any future changes in Shariah compliance.
Disclaimer: The information on Halalfinance.co.in is for educational and informational purposes only and not financial advice. We are not liable for any investment decisions you make; always consult a financial advisor before investing
Hasan is the founder of HalalFinance.co.in, created after personally struggling to find reliable answers about halal investing in stocks. With a finance background and a passion for helping the Muslim community, He now shares well-researched, transparent, and authentic content to empower Muslims on their path to halal wealth-building.
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