Servalakshmi Paper Limited which had tapped the capital markets with its IPO to raise Rs 60 crs in a price band of Rs 27-29 was subscribed. The issue had opened on Wednesday the 27th of April and closed on Friday the 29th of April. The issue received good excellent response from HNI’s and from retail and was oversubscribed while the QIB portion remained unsubscribed.
The details of the subscription level in various categories are given below: –
| Category | Shares Offered | Shares Subscribed | Times |
| QIB | 11111111 | 3793400 | 0.34 |
| NII | 3333333 | 14019800 | 4.21 |
| Retail | 7777778 | 14789800 | 1.90 |
| Overall | 22222222 | 32603000 | 1.47 |
The IPO is for the second phase of the project and involves installing balancing equipment and working capital requirements. Under the first phase of the project, the company has already commenced commercial production of its 90,000 tons per day writing and printing and newsprint production project.
The unique thing about this project is that the company has installed the plant and machinery with term loans and is tapping the capital market one year after stabilisation of the plant and therefore ensuring that there is no gestation period in the same.
