Nevertheless, an investor can always eye short-term gains, especially when all the software companies are listed at a premium of over 200 per cent. The primary market in fact come to such a pass that even companies with a software tag can be a hit with the investors. If the IPO is a low premium or a par issue, the returns may run into several times of the offer price after its listing.

Fore C Software is promoted by young and budding entrepreneurs (all are below the age of thirty). All the promoters have technical education and the current project is their first serious software venture. Although Fore C Software was incorporated in December, 1988, the company was almost dormant till 1995. After the current promoters - Bhagath Singh Maguluri, Anil Kumar Nadella and A Subramanyam - took over the reins of the company, the company started its operation in software training, consulting and software development (since 1995).

However, till fiscal 1999, the company could not start software development on a full scale. For the eight-month period ended November 30, 1999, the company generated Rs 68.6 lakh from software applications.

The company provides software training in e-commerce, java, network essentials, unix, server administration, network management, web development and web administration to internet service providers. Although this is a high margin business, the company's fortunes depend on the growth of ISPs in the country. Also, one worrying factor is that the company's training programmes are not recognised by any board or university in the country.

The company develops software application in networking, data base administration, business portal, data conversion and web development/space sales/maintenance. This is not a high margin business, but the company may benefit from the emergence of the new economy. The company has confirmed orders worth Rs 3.04 crore. However, the company has not received any advance against these orders and no specific agreement has been entered into for these projects.

The company has drawn up a Rs 12.12-crore project for the expansion of software development facilities, building intranet and extranet services, development of e-commerce and web based project facilities, expansion of software training centre and setting up an office in US at a total cost of Rs 1.5 crore. The entire project is being financed through the equity route.The company is projecting a net profit of Rs 56.07 lakh on total income of Rs 1.42 crore. The projected EPS is around Rs 2.31.

The Rs 7.36-crore IPO is opening on March 13 and closes on March 17. The IPO is lead managed by Aryaman Financial Services. The company is demanding Rs 8 on application and the balance on allotment.