Saj Hotels Limited is launching its IPO with a total issue size of ₹27.63 crores, consisting entirely of a fresh issue of 42.5 lakh shares. The IPO opens for subscription on September 27, 2024, and closes on October 1, 2024. The issue is priced at ₹65 per share.
Retail investors can apply with a minimum lot size of 2,000 shares, requiring a minimum investment of ₹1,30,000. For High Net Worth Individuals (HNIs), the minimum application is for 2 lots (4,000 shares), amounting to ₹2,60,000.
The allotment for the Saj Hotels IPO is expected to be finalised on October 3, 2024, and the company is set to list on the NSE SME platform with a tentative listing date of October 7, 2024. Saj Hotels Limited offers investors the opportunity to participate in the hospitality industry with this upcoming IPO.
Industry Outlook:
- India's travel and tourism sector contributed ₹15.9 trillion (US$ 191.25 billion) to the economy in 2022, with expected annual GDP growth of 7.8% over the next decade.
- India's travel market is projected to reach US$ 125 billion by FY27, up from an estimated US$ 75 billion in FY20, driven by robust demand and medical tourism.
Saj Hotels IPO Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- Capital Expenditure requirements towards expansion of existing resort properties.
- Funding of working capital requirements of the company.
- General corporate purposes.
About Saj Hotels Limited
Incorporated in February 1981, Saj Hotels Limited is a key player in the hospitality industry, offering a range of services including traditional resort accommodations, villa rentals, and restaurant and bar facilities. The company is dedicated to providing comprehensive hospitality services, ensuring a memorable and comfortable experience for its guests.
Saj Hotels owns or leases three resort properties, two of which are managed and operated by the company, while the third is leased to others. These resorts serve as versatile venues for events such as conferences, weddings, and social gatherings.
To expand its portfolio, Saj Hotels has invested 50% in My Own Rooms Dot In Private Limited, further diversifying its presence in the hospitality sector.
As of May 2024, Saj Hotels Limited employs 144 staff across various departments, supporting its operations and commitment to high-quality service delivery. The company continues to grow, offering unique and tailored accommodation experiences across different destinations.
Peer Details
The companies considered by Saj Hotels as its peers include:
- Royale Manor Hotels & Industries Limited
- Jindal Hotels Limited
How to Check the Allotment Status of the Saj Hotels IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
How to apply for Saj Hotels IPO online?
- Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
- Locate the IPO Section: Navigate to the 'IPO' section on the platform.
- Select IPO: Find and select the Saj Hotels IPO from the list of open IPOs.
- Enter the Lot Size: Specify the number of lots you want to bid for.
- Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
- Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
Contact Details of Saj Hotels IPO
- Registered office: Saj on the Mountains, Survey number 18, Mahabaleshwar Panchgani Road, Mahabaleshwar, Satara, Maharashtra – 412806
- Phone: 022-62875252 / 022-26203434
- E-mail: secretarial@sajresort.in
IPO Financials
| Particulars | Year ending on March 31, 2024 | Year ending on March 31, 2023 |
|---|---|---|
| Revenue from Operation (in ₹ lakh) | 1,425.77 | 1,271.37 |
| Profit After Tax (PAT) (in ₹ lakh) | 345.40 | 347.99 |
| Current Ratio (x) | 0.47 | 0.29 |
| Net Worth (in ₹ lakh) | 1,734.49 | 1,316.84 |
| Total Borrowings (in ₹ lakh) | 291.52 | 614.14 |
| Return on Equity (%) | 19.91% | 26.43% |
| Return on Capital Employed (RoCE) (%) | 26.36% | 34.64% |
| Revenue per Available Room (RevPAR) (in ₹) | 3,173.80 | 3,011.6 |
| Average occupancy (%) | 38.36% | 35.00% |
| Earnings Per Share (in ₹) | 2.90 | 3.00 |
Know before investing
Strengths
6Diversified solutions across PCB assembly, box build, IT hardware.
Acquired Sahasra Semiconductor for semiconductor and memory products manufacturing.
Exported 80% of products to over 10 countries in FY2024.
Manufacturing capacity of 1.8 lakh units in the Noida facility.
Revenue from exports reached ₹8503.97 lakh in FY2024.
EN 9100:2018 certified facility ensuring high-quality production standards.
Risks
6Saj Hotels incurred ₹120.18 lakhs loss during FY2021 due to COVID-19.
Negative cash flows reported in FY2024, FY2023, and FY2022.
Working capital needs may rise with planned property expansions.
Saj Hotels is involved in legal proceedings, with total claims worth ₹53 lakhs.
Lease agreements pose revenue risks if not renewed timely.
Seasonal variations lead to fluctuating occupancy and revenue levels.
