Servalakshmi Paper gets Sebi nod for IPO

Servalakshmi Paper today said it has received market regulator Sebi's nod for its initial public offer through which it aims to raise Rs 60 crore.

"Servalakshmi Paper, engaged in the business of manufacturing printing and writing paper and newsprint, has received Sebi nod for its proposed IPO," it said in a statement.

The company had filed the draft prospectus, with Securities and Exchange Board of India (Sebi) for raising Rs 60 crore through an IPO, in September 2010.

Servalakshmi Paper said issue proceeds are proposed to be utilised for purchase of equipments for producing value added products and augmenting long-term working capital requirement among others.

The firm has embarked upon setting up an integrated paper mill with a capacity to produce 300 tonne per day, along with a 15 MW multi-fuel captive power plant at a single location. The total investment is estimated to be Rs 340 crore and the entire project is set to be completed in two phases.

"The company has successfully completed the Phase-I of the project and started the commercial production in April last and intends to meet the requirements of Phase-II through the proposed IPO," Servalakshmi Paper said.

Keynote Corporate Service has been appointed as the book running lead manager to the issue and Indian Overseas Bank as the co-book running lead manager.