Servalakshmi Paper gets SEBI nod for IPO

Servalakshmi Paper has received the SEBI nod for its proposed initial public offering (IPO). The company proposes to enter capital markets with a public issue of equity shares aggregating Rs 60 crore through 100 per cent book building process. 

The company plans to utilise the proceeds of the issue for purchase of equipment for producing value-added products, augmenting long-term working capital requirement and to meet the preliminary and pre-operative expenses.

Keynote Corporate Services Limited is the book running lead manager to the issue and Indian Overseas Bank is the co–book running lead manager to the issue. Link Intime India Pvt Ltd is the registrar to the issue. 

The company has embarked upon setting up an integrated paper mill with a capacity to produce 300 tonnes per day (TPD), 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 completed the Phase-I of the project in all respects and started the commercial production on April 1, 2010. The company intends to meet the requirements of Phase-II through the proposed IPO.