The stock debuted at Rs 30, a premium of 3.45% to the initial public offer (IPO) price. So far the stock hit a high of Rs 30 and low of Rs 25. On BSE, 30.40 lakh shares were traded on the counter.

The initial public offer (IPO) of Servalakshmi Paper had closed on 29 April 2011 with an over subscription of 1.47 times. The IPO had received bids for 3.26 crore shares compared with 2.22 crore shares on offer. The company had priced the IPO at the upper end of the Rs 27-29 per share price band.

The qualified institutional buyers' (QIBs) category was subscribed 0.34 times. Non institutional investors category was subscribed 4.21 times and retail individual investors (RIIs) category was subscribed 1.9 times.

Ratings firm ICRA had assigned grade 2 to Servalakshmi Paper IPO indicating below average fundamentals.

Servalakshmi Paper is engaged in manufacturing printing, writing paper and newsprint. The company plans to use the proceeds of the IPO on buying balancing equipment for producing value-added products and also augmenting working capital expenses.

Servalakshmi Paper reported a net loss of Rs 14.90 crore on net sales of Rs 39.18 crore in the seven months ended October 2010.