Servalakshmi, Innoventive IPOs scrape through

MUMBAI: The IPOs of Servalakshmi Paper and Innoventive Industries, which closed for subscription on Friday, received a lukewarm response from investors with the issue subscribed 1.47 times and 1.24 times, respectively.

According to exchange data, Servalakshmi Paper received bids totalling 3.26 crore equity shares as of 6 p.m while the Pune-based multiproduct engineering company, Innoventive Industries , received bids for more than 2.31 crore equity shares against 1.88 lakh shares, according to NSE data available.

The majority of bids were received at the lower end of price band of Rs 117- Rs 120 per equity share. A few broking firms had deemed the Servalakshmi issue overpriced to its peers (BILT, TN Print) and had recommended avoiding the issue, in its research report. “SPL’s plant has started its operations recently, thus the company will take some time to make profits. Further, given the nature of the industry, any sort of price correction in paper prices would lead to delay in profitability,” said the Angel Broking report.