In the two months during the current fiscal, there are nine software IPOs which are awaiting Sebi nod to go public. Against this, in fiscal 1999 there were four software IPOs, and there was not any public offer from this sector in fiscal 1998, the release says.

In the near future, primary offerings aggregating Rs 166 crore are in the pipeline. Prominent among them are Polaris Software (Rs 80 crore- at the lower limit of the price band of Rs 185-220), Computech Intl (Rs 25 crore), SQL Star International (Rs 15 crore) and Helios & Matheson (Rs 11 crore).

During fiscal 1999, the four software IPOs that hit the market -- Sonata Software (Rs 22.70 crore), KPITSystems (Rs 11.61 crore), Cybermate Infotek (Rs 2.15 crore) and Shri MM Softek (Rs 1.75 crore), had all evoked overwhelming response from the investors and have subsequently yielded handsome returns upon listing.

Over the years, the phenomenal capital appreciation which the software companies have offered is now drawing attention of not only the retail investors, but also of the FIIs and the mutual funds. The interest of the mutual funds in the software sector is evident from the fact that some of them have recently floated IT specific funds.

However, as a word of caution, Prime says that it is sceptical about history repeating itself when some unscrupulous promoters would again exploit the euphoric market conditions to defraud the investors. According to a compilation done by Prime, at least 40 companies, most being former NBFCs, have rechristened to suggest a software activity. Most these companies have already shown handsome gains on the secondary market.