Saj Hotels is scheduled to hit the market on September 27, 2024 and close on October 1, 2024.
Saj Hotels plans to raise around ₹27.63 Cr through an IPO with a sale of up to 4,250,000 equity shares of ₹10 each. The Retail offered 50%, Other Shares Offered 50%.
Saj Hotels Limited was established in February 1981 and is involved in the hospitality sector. The company offers a variety of services, including resort stays, villa rentals, and restaurant operations. They focus on providing a comfortable and enjoyable experience for guests through their different accommodation options in various locations. Currently, Saj Hotels owns or leases three resort properties, with two managed by the company and one leased out. These resorts can host events like conferences, weddings, and social gatherings.
The company also holds a 50% stake in My Own Rooms Dot In Private Limited, which helps expand its business and diversify its offerings. As of May 2024, Saj Hotels employs 144 people across different departments. Their strengths include stunning views of nature, with mountains, valleys, and lakes that attract visitors. They provide various amenities such as restaurants, a spa, and wedding facilities, ensuring a memorable experience for guests while also maintaining stability throughout the year. Additionally, Saj Hotels engages with local communities to build strong relationships.
Saj Hotels IPO Details
Saj Hotels IPO opens on September 27, 2024, and closes on October 01, 2024. The Listing date for Saj Hotels IPO is on October 07, 2024. The price band for IPO is ₹65 per share and lot size of 2000 Shares.
| IPO Date | September 27, 2024 to October 01, 2024 |
| Listing Date | October 07, 2024 |
| Price | ₹65 per share |
| Lot Size | 2000 Shares |
| Issue Size | ₹27.63 Cr |
| Face Value | ₹10 per share |
Saj Hotels IPO Tentative Timetable
Saj Hotels opening date is September 27, 2024 and close date is October 01, 2024. The IPO allotment date is October 03, 2024. Therefund initiation of IPO is on October 04, 2024. The credit of shares in demat account is on October 04, 2024. The listing date is on October 07, 2024.
| Event | Date |
|---|---|
| IPO Opening | September 27, 2024 |
| IPO Closing | October 01, 2024 |
| IPO Allotment Date | October 03, 2024 |
| Refund Initiation | October 04, 2024 |
| Shares Credit to Demat | October 04, 2024 |
| Lisiting Date | October 07, 2024 |
Saj Hotels IPO Lot Size
Lot Size of this IPO is 2000 shares. A retail-individual investor can apply for up to 1 lots (2000 shares or ₹130,000).
| Category | Lots | Shares | Amount |
|---|---|---|---|
| Retail(Minimum) | 1 | 2000 | ₹130,000 |
| Retail(Maximum) | 1 | 2000 | ₹130,000 |
| HNI (Minimum) | 2 | 4000 | ₹260,000 |
Saj Hotels IPO Promoter Holding
| Pre Issue Share Holding | 84.12% |
| Post Issue Share Holding | 61.94% |
Saj Hotels IPO Review
The company is launching its first IPO (Initial Public Offering) of 4,250,000 equity shares at a price of ₹65 each. The total amount they aim to raise is ₹27.63 crore. Each share has a face value of ₹10.
Over the last four financial years, the company has shown the following financial performance (on a consolidated basis):
- FY21: Total income of Rs. 8.12 crore and a net loss of Rs. 1.20 crore. The loss was mainly due to the pandemic, which affected the hospitality industry.
- FY22: Total income of Rs. 12.88 crore and a profit of Rs. 1.44 crore.
- FY23: Total income of Rs. 12.82 crore and a profit of Rs. 3.56 crore.
- FY24: Total income of Rs. 14.56 crore and a profit of Rs. 3.45 crore. The slight decrease in profit for FY24 is due to some rooms being out of service because of heavy rains and spending on a new property.
For the last three years, the average Earnings Per Share (EPS) was Rs. 2.65, and the average Return on Net Worth (RoNW) was 21.24%. The issue is priced at a Price to Book Value (P/BV) ratio of 4.45 based on its Net Asset Value (NAV) of Rs. 14.61 as of March 31, 2024. After the IPO, the P/BV ratio based on the NAV of Rs. 10.76 per share raised some concerns. However, after consulting with the merchant banker, they acknowledged some calculation errors and confirmed a revised post-IPO NAV of Rs. 27.89 per share, leading to a new P/BV ratio of 2.33.
If we consider the earnings from FY24 based on the fully diluted paid-up equity capital after the IPO, the asking price shows a Price to Earnings (P/E) ratio of 30.37. Based on FY23 earnings, the P/E ratio is 29.41. This indicates that the issue seems to be priced quite high.
The company reported Profit After Tax (PAT) margins as follows:
- FY21: -14.92%
- FY22: 10.29%
- FY23: 27.37%
- FY24: 24.23%
The Return on Capital Employed (RoCE) margins were:
- FY21: 4.16%
- FY22: 28.64%
- FY23: 34.64%
- FY24: 26.36%
The company works in the hospitality industry and follows a B2B2C model. It has shown slow but steady improvement in its financial performance after the pandemic. However, for FY24, it faced a small setback due to heavy rains and costs related to its expansion plans. The growing interest in hospitality services is a positive sign for the company. Although the current pricing based on FY24 earnings seems high, considering the demand for its B2B business and future expansion, investors might consider investing for the medium to long term.
Saj Hotels IPO Subscription Status (Bidding Details)
Table not foundSaj Hotels IPO Broker Recommendations
- Capital Market: To be updated soon
- Anand Rathi: To be updated soon
- SMC Global: To be updated soon
- Arihant Capital: To be updated soon
Saj Hotels IPO FAQs
What is Saj Hotels IPO?
Saj Hotels is issuing 4,250,000 equity shares with a face value of ₹10 each, totaling up to ₹27.63 Cr. The shares are being offered at a price of ₹65 each, with a minimum order quantity of 2000 shares.
Satellite Corporate Services Private Limited is the registrar for the IPO, and the shares are planned to be listed on the BSE and NSE.
When Saj Hotels will open?
Saj Hotels will open on September 27, 2024 for QIB, NII, and Retail Investors.
When Saj Hotels IPO will end?
Saj Hotels will end on October 01, 2024.
What is Saj Hotels IPO Size?
Saj Hotels IPO size is ₹27.63 Cr.
What is Saj Hotels IPO Price Band?
Saj Hotels price band is ₹65 per share.
What is Saj Hotels IPO Allotment Date?
Saj Hotels allotment date is October 03, 2024.
What is Saj Hotels IPO Listing Date?
Saj Hotels listing date is October 07, 2024. The IPO is to be listed on BSE and NSE.
How to Saj Hotels IPO through Zerodha?
To apply for the IPO “Saj Hotels” on Zerodha, log in to the Zerodha website or app, go to the Portfolio section, and click on IPO. Then, click on the “Apply” button and enter your UPI ID, the desired quantity, and the price. Submit the IPO application form and then approve the mandate on your UPI app. To complete the process, you should have an demat account. If you don't have one, open a demat account with Zerodha.
How to Apply Saj Hotels IPO through Upstox?
To apply for the IPO “Saj Hotels” on Upstox, log in to the Upstox website or app, click on IPO. Then, click on the “Apply” button and enter your UPI ID, the desired quantity, and the price. Submit the IPO application form and then approve the mandate on your UPI app. To complete the process, you should have an demat account. If you don't have one, open a demat account with Upstox.
How to check Saj Hotels IPO Allotment Status?
For Saj Hotels IPO Allotment status check you can visit this link, select the desired IPO and enter your PAN to check the allotment status.
What is Saj Hotels IPO GMP?
You can check out here: Saj Hotels IPO GMP. Check all IPO GMP here.