The initial public offer (IPO) of Servalakshmi Paper was subscribed 0.39 times as at 16:00 IST on day one of the issue today, 27 April 2011. The IPO got bids for 86.48 lakh shares compared with 2.22 crore shares on offer.

Servalakshmi Paper plans to raise Rs 60 crore through issue of shares in the price band of Rs 27 to Rs 29 per share. The issue closes on 29 April 2011.

Ratings firm ICRA has assigned grade 2 to Servalakshmi Paper IPO indicating below average fundamentals. 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 is engaged in manufacturing printing, writing paper and newsprint.