Servalakshmi Paper plans to raise around Rs 60 crore from its initial public offering for funding the on-going construction of an integrated paper mill in Tamil Nadu. The issue, with a price band of Rs 27-29 a share, will open on April 27 and close on April 29, announced the company at a press conference on Thursday.

The company is a part of the Tamil Nadu-based Servall group, and is engaged in manufacturing printing and writing paper and newsprint. The total investment in the paper mill project is Rs 340 crore, of which the company has already invested Rs 280 crore. The funding of Phase II of the project will be done through the proceeds of the IPO.

The promoters, who hold 100 per cent stake in the company, will dilute around 45 per cent of their stake through the public issue. This is however, subject to the size of the IPO, which has not yet been decided.

The net worth of the company as on October 2010 is Rs 40 crore.

Keynote Corporate Services is the book running lead manager to the issue and Indian Overseas Bank is the co–book running lead manager.

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