Later JF Electra Mauritius Ltd, a private equity fund of Jardine Fleming picked up a 25 per cent stake in the software subsidiary, ICIL. Fujitsu-ICIM's hardware units in Pune had suspended operations in 1996.

If this is history, what are the reasons for the sudden fancy for the stock. According to market sources, after the sale of its hardware facilities and assets, Fujitsu-ICIM is planning to merge the remaining company with its software subsidiary. If it's true, the timing could not have been better.

ICIL has recently recieved Level 5 certificate (SEI CMM Level 5). Very few software companies in India have Level 5 certificate. This certificate is granted by the presitious Software Engineering Institute (SEI), Carnegie Mellon University, USA.

According to an analyst, ``It took eight years for Wipro to attain Level 4 but Fujitsu-ICIM after the merger (with its software subsidiary) will automatically become Level 5 company.'' With most IT favourites of the market peaking out, FIIs are learnt to have shifted their focus to other smaller companies in the sector.

According to a dealer with a foreign brokerage house, ``FIIs are now looking for `multi-baggers' in the IT sector.'' One such company identified by the foreign investors is Fujitsu-ICIM, he further added. However, the company's financials do not warrant this kind of a rush for the stock. In the first nine months of the current fiscal the company reported a loss of Rs 1.94 crore while the total sales were Rs 29 crore. The stock in a year's time has given a return of 4000 per cent. A year ago, the scrip was trading at Rs 11.

The RPG group holds 30 per cent stake in the company while the collaborators hold 42 per cent in the company. The public holds around 17 per cent in the company and the rest is with the domestic institutions.