In a matter of eight trading sessions, the stock has zoomed by 76 per cent from Rs 271 on November 25 to Rs 488 on December 7. This has also provided a very attractive profit-booking opportunity for many investors. On December 8, the stock opened at a much higher level at Rs 527 (which is also the new high for the stock since listing) against the previous day's closing of Rs 488. At the Rs 427-level, the stock provided a capital gain of 339 per cent against the IPO price of Rs 120. This triggered the correction at the counter and the stock slipped to Rs 449 on Wednesday before closing at Rs 477.

Kale Consultants is negotiating with six overseas companies for forming three joint ventures in USA and three other JVs in Australia and New Zealand based companies. The company is eyeing majority stakes in these new ventures.

In September 1999, the company went public with a Rs 38.25-crore issue at a price of Rs 120. The IPO received overwhelming response from both retail as well as institutional investors and was oversubscribed by 74 times. The company collected Rs 947.2 crore as application money (Rs 40 on application), which shows an investor commitment of a staggering Rs 2830.5 crore (on offer price of Rs 120). Even if the company earns interest on the application money even for one month, the other income would get a major boost.

Around 30 per cent of the IPO proceeds will be used for these joint ventures. Besides the overseas ventures, Kale Consultants is also planning a a subsidiary in Europe to penetrate European markets. The company is looking forward to complement its existing product portfolio by the forthcoming JVs. The company offers enterprise application software product and support services to banking and airlines industries.

For fiscal 1999, the company's revenue shot up 71 per cent to Rs 21.39 crore (60 per cent of which was from exports) and net profit zoomed 117 per cent to Rs 5.22 crore. Within the next two years, the product-based company is targeting a three-fold growth in turnover to Rs 60 crore.