Unfortunately, the new listed company Servalakshmi Paper Mills is one of the smallcap duds. We have seen a fair clutch of them. It might have got subscribed through HNI subscription. None of the QIP would look at an issue of that size.
Even retail gave it the pass and is very difficult to value it. It had no operations for last two years. It has just started its plant with negligible profits. It is very difficult to justify any kind of valuation here. It would settle down around Rs 15-16.
These smallcaps stocks come and go, people forgot after three days and then they stabilise at a big-big discount to the issue price. Whoever got in, barring the excitement which can happen as was the case with Paramount Printing a couple of days back. You will see it double and then halve and then halve again. So, those kinds of things will happen but fundamentally there is not a whole lot to recommend.
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