Indian Paper Company Seeks IPO

Recycled-content paper maker seeks funding for plant upgrades.

March 10, 2011

Servalakshmi Paper Ltd., based in Coimbatore, India, says it has received regulatory approval for an initial public offering (IPO) through which it intends to raise 600 million Indian rupees ($13.3 million).

“Servalakshmi Paper, engaged in the business of manufacturing printing and writing paper and newsprint, has received the SEBI (Securities and Exchange Board of India) nod for its proposed IPO,” the company announced in a statement.

According to a news report on the Business Standard website, the company filed the draft prospectus with SEBI to raise the 600 million rupees through an IPO in September of 2010.

Servalakshmi Paper said the proposed proceeds will be used to purchase equipment for producing “value-added products and augmenting long-term working capital requirements,” among other goals.

On its corporate website (, the company describes itself as producing “eco-friendly paper for everlasting impressions.” The website also notes that the company “requires around 1.2 million metric tons of good quality waste paper of different grades . . . outsourced from different countries.”

The firm has embarked upon setting up a 300 metric tons-per-day integrated paper mill, along with a 15-megawatt multi-fuel captive power plant at a single location, according to the Business Standard. The total investment is estimated to be 3.4 billion Indian rupees ($75 million) and the entire project is set to be completed in two phases.

“The company has successfully completed Phase I of the project and started commercial production in April 2010, and intends to meet the requirements of Phase II through the proposed IPO,” Servalakshmi Paper says in its statement.

Keynote Corporate Service and Indian Overseas Bank are also involved in the funding process, according to the Business Standard news item.