The software hammering over the past few days had given rise to worries of a muted listing for Kale Consultants. The company had tapped the market in mid-September with a Rs 38.25 crore equity issue at a premium of Rs 110 per share. According to sources, if the buying momentum is maintained at Tuesday's level, the company should be able to command a high premium to its offer price on listing.

Going by the listings of software companies, Kale Consultants should list at a premium of 100 per cent to its offer price. Says a Mumbai-based dealer, "I expect an opening quote of Rs 250-275 provided, of course, that buying in the IT continues unabated." On the other hand, there are sceptics who are of the opinion that with the valuations of IT companies like Infosys, NIIT and Wipro turning attractive, punters would prefer logging into these counters rather than a debutante. "One must not forget that when most of the other IT listings took place, the market was booming and IT counters were the talk of the town. Anything with a software tag, naturally attracted attention. This is not the case today. In a normal market, the premium could have been more than 100 per cent, but today, one is not so sure," said a DSE broker, adding that the premium will be much lower this time.

However, with well-accepted software products like Praxis, Apex and Plutus as well as an established clientele (with international customers like Citibank and Stanchart) under its belt, Kale Consultants should attract considerable buying interest on the bourses. In fact, the company is currently working on an off-the-shelf product - Winbank - which is cheaper than a similar package from Infosys Technologies. The company is also foraying into growth areas like healthcare and co-operatives. Besides, it is also adding projects to it's solutions portfolio. Given this business profile, it is not surprising that Kale Consultants received an overwhelming response to its initial public offering. Also, considering that there was no firm allotment to institutions in the IPO, investment by such investors should keep interest alive in the Kale Consultants counter on listing. The compounded net profit growth rate of over 55 per cent over the past three years and an estimated growth of over 60 per cent in bottomline shouldalso lure many.

Hughes Software to follow suit soonClose on the heels of Kale Consultants' listing on BSE will be Hughes Software, which has completed the share allotment process. Sources say the company is likely to list on BSE within the next fortnight or so. Marketmen are waiting with interest the listing of this Gurgaon-based telecommunications software company. Offered at Rs 630 per share, the company is expected to strike an initial quote in excess of Rs 1000 on BSE.