Servalakshmi Paper lists at issue price on NSE

Servalakshmi Paper Mills' shares started the trade at issue price of Rs 29 a share but could not manage to hold the same level. A share drifted lower by 3% at 9:32 hours, to trade at Rs 28.15 on the National Stock Exchange.

The stock touched a low of Rs 24.60 in early trade. Trade volume on BSE and NSE was nearly 1.7 crore equity shares as against 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.