Error in starting rails server in local - Puma - runner.rb:103:in `reopen'- No such file or directory @ rb_io_reopen

I am facing the following error in trying to start the rails server, locally. The repository in the production environment working fine. Recent version from production is cloned into local. The only change was in the rails version in gemfile; changed from ruby '2.2.1' to ruby '2.2.3'. Following the bundle update, this problem/error displays, on trying to start the rails server.

I am using a mac, the users directory is Users/circle. (issue could be related to puma version, rvm version and gem file versions). But any hints and suggestions in this regards would be greatly appreciated. 

[3951] Puma starting in cluster mode...
[3951] * Version 3.2.0 (ruby 2.2.3-p173), codename: Spring Is A Heliocentric Viewpoint
[3951] * Min threads: 1, max threads: 6
[3951] * Environment: development
[3951] * Process workers: 2
[3951] * Phased restart available
[3951] * Listening on tcp://localhost:3000
[3951] Use Ctrl-C to stop

/Users/circle/.rbenv/versions/2.2.3/lib/ruby/gems/2.2.0/gems/puma-3.2.0/lib/puma/runner.rb:103:in `reopen': No such file or directory @ rb_io_reopen - /Users/circle/Test_new/testdirectory/shared/log/puma.stdout.log (Errno::ENOENT)
    from /Users/circle/.rbenv/versions/2.2.3/lib/ruby/gems/2.2.0/gems/puma-3.2.0/lib/puma/runner.rb:103:in `redirect_io'
    from /Users/circle/.rbenv/versions/2.2.3/lib/ruby/gems/2.2.0/gems/puma-3.2.0/lib/puma/cluster.rb:40:in `redirect_io'
    from /Users/circle/.rbenv/versions/2.2.3/lib/ruby/gems/2.2.0/gems/puma-3.2.0/lib/puma/cluster.rb:408:in `run'
    from /Users/circle/.rbenv/versions/2.2.3/lib/ruby/gems/2.2.0/gems/puma-3.2.0/lib/puma/launcher.rb:172:in `run'
    from /Users/circle/.rbenv/versions/2.2.3/lib/ruby/gems/2.2.0/gems/puma-3.2.0/lib/rack/handler/puma.rb:51:in `run'
    from /Users/circle/.rbenv/versions/2.2.3/lib/ruby/gems/2.2.0/gems/rack-1.6.4/lib/rack/server.rb:286:in `start'
    from /Users/circle/.rbenv/versions/2.2.3/lib/ruby/gems/2.2.0/gems/railties-4.2.6/lib/rails/commands/server.rb:80:in `start'
    from /Users/circle/.rbenv/versions/2.2.3/lib/ruby/gems/2.2.0/gems/railties-4.2.6/lib/rails/commands/commands_tasks.rb:80:in `block in server'
    from /Users/circle/.rbenv/versions/2.2.3/lib/ruby/gems/2.2.0/gems/railties-4.2.6/lib/rails/commands/commands_tasks.rb:75:in `tap'
    from /Users/circle/.rbenv/versions/2.2.3/lib/ruby/gems/2.2.0/gems/railties-4.2.6/lib/rails/commands/commands_tasks.rb:75:in `server'
    from /Users/circle/.rbenv/versions/2.2.3/lib/ruby/gems/2.2.0/gems/railties-4.2.6/lib/rails/commands/commands_tasks.rb:39:in `run_command!'
    from /Users/circle/.rbenv/versions/2.2.3/lib/ruby/gems/2.2.0/gems/railties-4.2.6/lib/rails/commands.rb:17:in `<top (required)>'
    from bin/rails:4:in `require'
    from bin/rails:4:in `<main>'