Servalakshmi Paper plunges 37% on debut

It was a disappointing session for the Servalakshmi Paper and its volume was quite huge on Day 1. A share has seen big swing in an intraday trade today, before closing at Rs 18.20 - down 37% compared to issue price of Rs 29.

The stock rallied 68% to touch a high of Rs 48.70 during the day while hit a low of Rs 17.70 in late trade.

Total traded volume on both exchanges was nearly 27 crore equity shares - higher by 13.5 times compared to an IPO size of 2 crore shares. Even that was higher by 6 times compared to total outstanding shares of 4.3 crore.

Servalakshmi Paper is engaged in business of manufacturing printing & writing paper and newsprint. 

Company 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.