Investors had overwhelmingly responded to the IPOs of these software companies (oversubscription figures run into several crores), but the IT firms are now finding no buyers on the bourses. These investors must now be cursing themselves as they are sitting on several crores of capital loss. Another fact which is adding to the woes of the investors is that all the three companies are listed on small stock exchanges like Hyderabad, Bangalore, Ahmedabad and Madras. Hence, the problem of liquidity is playing havoc with the cyber dreams of these investors.

For instance, Contech Software, which was listed on May 19, is not traded on the bourses, according to available information. Contech has been listed at the stock exchanges of Hyderabad and Bangalore. Although the company had also proposed to list on the Ahmedabad Stock Exchange, it is yet to be seen Contech trading on the exchange.

One can imagine the plight of investors especially when they had paid a premium of Rs 50 on each share of Contech. Lead managed by Canara Bank, Contech had offered 13.8 lakh shares of Rs 10 each at a price of Rs 60. Interestingly, SBI Mutual Fund is believed to have picked up 2 lakh shares at a higher price of Rs 75 from Contech promoters. The company had charged Rs 30 on application and Rs 30 allotment. The company is embarking on a Rs 10.71-crore project. Of this, a major portion of Rs 4.49 crore was earmarked for working capital requirements (which is not a capital expenditure), Rs 68 lakh for repayment of debt and Rs 40 lakh for buying motor vehicles.

Fore C Software is currently trading at a hefty discount to its offer price on the bourses. Fore C Software, which was listed at the Madras Stock Exchange on May 18, is trading at a discount of 48.43 per cent to its offer price. Lead managed by Aryaman Financial Services, Fore C had offered 46 lakh shares at a price of Rs 16 and the stock closed on Tuesday (May 30) at Rs 8.25, a gain of 25 paise on Monday's close of Rs 8. On the Hyderabad Stock Exchange, the stock was languishing at around Rs 7.6 on Tuesday, which is a gain of 60 paise on Monday's close. Hence, the capital loss to the investors works out to Rs 3.86 crore. On the Bangalore Stock Exchange, Fore C is yet to make its debut quote. Fore C was a below average IPO.

Although the company was incorporated in 1989, it was dormant till 1995. The company started software training, consulting and software development on a small scale. The performance of the company till fiscal 1999 was dismal. The company had drawn up a Rs 12.12 crore project, which is being financed through the issue proceeds. Of this, a mjor portion of Rs 3 crore was earmarked for setting up an office and Rs 1.05 crore for office furnishing and electrical equipment.

Infobahn Technologies is currently trading at Rs 20.5 on the Bangalore Stock Exchange against the offer price of Rs 10. However, this won't be enough for investors to get an exit opportunity from this stock. There are hardly any buyers for this stock at the current level. On May 30, only one trade took place for 200 shares. On the Hyderabad Stock Exchange, the stock is not traded at all.