Essel Software and Services: Below average

Score: Below average

Krishnan Thiagarajan

GIVEN the heightened competition levels in the software business, the inexperience of Essel Software and Services in this line of business and the optimistic financial projections (given the past track record), the public offer of Essel Software may not offer much scope for capital appreciation.

Essel Software and Services is making a public offer to part-finance the cost of the proposed software development project and set up overseas offices in Singapore and the US. The project cost is estimated to be Rs 6.75 crore and the offer price is Rs 10. The IPO proposes to focus on development of software in the areas of software product development, offshore projects, onsite projects, web applications, portal development and e-commerce related projects. The offer opens on September 25 and closes on October 3. The lead manager to the issue is Aryaman Financial Services. The stock is to be listed at Hyderabad and Ahmedabad stock exchanges.