Servalakshmi Paper gets SEBI nod for IPO, to enter capital markets soon

Servalakshmi Paper Ltd, engaged in the business of manufacturing printing and writing paper and newsprint, has received SEBI nod for its proposed IPO. The company proposes to enter capital markets with a public issue of equity shares aggregating Rs.600 million through 100 percent Book Building Process. The company proposes to utilize the net proceeds of the Issue for purchase of equipments for producing value added products, augmenting long term working capital requirement and to meet the preliminary & 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) i.e. 90,000 tonnes per annum, along with a 15 MW multi – fuel captive power plant at a single location. The total investment is estimated to be Rs. 340 crores and the entire project is set to be completed in two phases. The company has successfully completed the Phase-I of the project in all respects and started the commercial production on April 1st, 2010. The company intends to meet the requirements of Phase-II through the proposed IPO.

Servalakshmi Paper Ltd is an ambitious project of the Servall Group. Servall is an accredited name in the paper industry with a strong presence in all verticals namely paper machinery manufacturing, paper manufacturing, project consultancy and turnkey project implementations. The company manufactures wide range of products based on the customer specification. Some of the leading newspaper groups are the top clients of the Company. The company has also been certified by Forest Stewardship Council (FSC), an international certification and labelling system, that guarantees that paper and wood products carrying its label, come from environmentally and socially responsible sources.

About Servalakshmi Paper Ltd

Servalakshmi Paper Limited was incorporated in 2005 by the Servall Group. The company carries the production through the state of art production unit located at Kodaganallur Village, Tirunelveli district of Tamil Nadu. The plant is located in an area covering about 340 acres of land that has a total production capacity of 90,000 tonnes per annum. The plant is considered as one of the largest single location plants in India and ranks within fifteen major plants in the country.

To ensure consistent availability of power, the company has installed a co–generation power plant with a capacity of 15 MW to supply uninterrupted power and steam for their paper plant. The company has latest technology many of which are of first of its kind in India. The company has gradually developed selling and distribution network over a period of time. The company is the first in India to go for POM Technology from Finland in Stock Preparation that saves energy and reduces production cost. The company has introduced Motor Control Centres (MCC) in entire plant which is maintenance free. Further, it has installed superior communicating systems viz. Distributor Control Systems (DCS) from YOKOGAWA and Quality Control Systems (QCS) from HONEYWELL for improving its productivity.