Virtual Galaxy Infotech receives only Rs 4.94 crore upfront

Virtual Galaxy Infotech Limited had received Rs 4.94 crore, the 25% upfront amount, from its Rs 19.77 crore convertible-warrant issue by 30 September 2026; the remaining Rs 14.83 crore earmarked for working capital had not been received, and none of the 12,43,432 warrants had converted into shares.

How much of Virtual Galaxy Infotech’s warrant issue has been funded?

Virtual Galaxy Infotech had funded Rs 4.94 crore of the Rs 19.77 crore warrant issue as at 30 September 2026. The company issued 12,43,432 convertible share warrants at Rs 159 each during the reporting period, with each warrant convertible into one equity share of face value Rs 10.

The Rs 4.94 crore represents the 25% consideration payable on allotment, while the remaining 75% may be received at any time within 18 months from the allotment date. The disclosed Rs 19.77 crore is therefore the aggregate amount received or to be received, rather than cash fully collected by the half-year end.

Virtual Galaxy Infotech reported Rs 4.94 crore as money received against share warrants within shareholders’ funds on 30 September 2026, compared with no balance under that line on 31 March 2026. Its cash-flow statement also recorded Rs 4.94 crore as an increase in share application money pending allotment during the six months ended 30 September 2026.

What is Virtual Galaxy Infotech’s warrant money intended to fund?

Virtual Galaxy Infotech allocated Rs 14.83 crore of the warrant issue to working capital and Rs 4.94 crore to other general corporate purposes. The allocation shows that the intended working-capital amount was larger than the upfront receipt, which was directed to the other general corporate purpose object.

The company reported Rs 4.94 crore received and Rs 4.94 crore utilised for other general corporate purposes by 30 September 2026. It reported Rs 1,000 as unutilised under that object, while the working-capital row showed no amount received or utilised during the period.

The filing does not present Rs 14.83 crore as warrant cash available for working capital at 30 September 2026. Instead, it identifies the sum as an object of the issue whose funding depends on receipt of the outstanding warrant consideration; no individual payment schedule beyond the 18-month window was disclosed.

Have Virtual Galaxy Infotech’s warrants converted into equity shares?

No, Virtual Galaxy Infotech had converted none of its 12,43,432 warrants into equity shares as at 30 September 2026. The entire warrant balance remained pending for conversion, according to Note 6 to the financial results highlighted by the statutory auditor.

Each warrant gives the holder an option to convert into one Rs 10 equity share within 18 months of allotment. The balance 75% consideration is to be received within that same 18-month period, meaning payment of the balance and conversion remain future actions under the disclosed warrant terms.

Virtual Galaxy Infotech’s share capital was unchanged at Rs 24.87 crore on both 30 September 2026 and 31 March 2026, consistent with no warrant conversion. Reserves and surplus rose to Rs 218.23 crore from Rs 193.59 crore over the same dates, while the Rs 4.94 crore warrant receipt was reported separately within shareholders’ funds.

What does the pending warrant money mean for working capital?

For Virtual Galaxy Infotech, the pending balance means that Rs 14.83 crore allocated to working capital was not funded through warrant receipts by 30 September 2026. The received Rs 4.94 crore was allocated to other general corporate purposes and was almost entirely utilised, leaving Rs 1,000 unutilised.

Cash and cash equivalents stood at Rs 11.41 crore on 30 September 2026, down from Rs 31.18 crore on 31 March 2026. Over the same period, trade receivables increased to Rs 42.50 crore from Rs 32.16 crore, while short-term loans and advances declined to Rs 14.43 crore from Rs 21.44 crore.

Virtual Galaxy Infotech generated Rs 38.68 crore of net cash from operating activities in the six months ended 30 September 2026, while investing activities used Rs 56.87 crore. Net cash and cash equivalents consequently decreased by Rs 19.77 crore during the half year, closing at Rs 11.41 crore.

How did Virtual Galaxy Infotech perform in the half year?

Virtual Galaxy Infotech reported revenue from operations of Rs 104.58 crore for the six months ended 30 September 2026, up from Rs 86.13 crore in the six months ended 30 September 2025. Profit after tax increased to Rs 24.64 crore from Rs 22.02 crore in the comparable prior-year half year.

For the quarter ended 30 September 2026, revenue from operations was Rs 64.21 crore, compared with Rs 40.38 crore in the quarter ended 30 June 2026. Quarterly profit after tax was Rs 15.44 crore, compared with Rs 9.20 crore in the preceding quarter; these results are separate from the warrant receipts.

Basic earnings per share were Rs 9.91 for the six months ended 30 September 2026, compared with Rs 9.17 in the prior-year half year. Diluted earnings per share were Rs 9.49 in the latest half year, and the filing separately confirmed that no warrants had converted by 30 September 2026.

Conclusion

Virtual Galaxy Infotech had received only Rs 4.94 crore of the Rs 19.77 crore amount associated with its convertible warrant issue by 30 September 2026. That upfront consideration was allocated to other general corporate purposes and nearly fully utilised, while the Rs 14.83 crore working-capital allocation remained unreceived and all 12,43,432 warrants remained outstanding.

The next disclosed milestone is the 18-month period from allotment in which holders may convert warrants and must pay the 75% balance consideration. Future disclosures can show whether Virtual Galaxy Infotech receives further warrant funds, records conversions into equity shares, and makes the stated working-capital amount available through the issue.