Servalakshmi cracks on profit booking after surge of 68%
Servalakshmi Paper Mills has seen heavy profit booking post sharp surge in last couple of hours. A share was trading at Rs 25 at 14:39 hours, down 14% as compared to issue price of Rs 29 on the National Stock Exchange.
Servalakshmi Paper Mills has seen heavy profit booking post sharp surge in last couple of hours. A share was trading at Rs 25 at 14:39 hours, down 14% as compared to issue price of Rs 29 on the National Stock Exchange.
It had surged nearly 68% in noon trade, with hitting a high of Rs 48.70. Trading volume on BSE and NSE was more than 23.57 crore equity shares - nearly 12 times more as compared to issue size of 2 crore shares.Servalakshmi Paper is engaged in business of manufacturing printing & writing paper and newsprint. The company has set up an integrated paper mill with a capacity to produce 300 Tonnes Per Day (TPD) i.e. 90,000 MTPA along with a 15 MW Multi Fuel Captive Power Plant at a single location in phase I of the project implementation. Out of the total investment estimated at Rs 340 crore, the company has already spent an amount of Rs 280 crore to implement phase I of the project in all respects. The commercial production has commenced from April 2010.Having created the required manufacturing facilities through Phase-I, Servalakshmi Paper is now in the process of implementing the Phase-II of the project which will add balancing equipments for producing value added products which will lead to enhancing the capacity to 1,08,000 MTPA and also augmenting working capital needs. The company intends to meet the requirements of Phase-II through the IPO money of Rs 60 crore. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
