Saj Hotels operates in the hospitality industry, providing a diverse range of offerings that include Business-to-Business (B2B), Business-to-Business-to-Customer (B2B2C), and Business-to-Customer (B2C) services. Their portfolio ranges from traditional resort accommodations to villa rentals, alongside restaurant and bar properties. This multifaceted approach positions Saj Hotels to cater to a variety of customer needs.

The upcoming Saj Hotels IPO is a Fixed Price Issue amounting to ₹27.62 Crores, consisting entirely of a Fresh Issue of 42.50 Lakh Shares. The subscription period opens on September 27, 2024, and closes on October 01, 2024. Allotment is expected to be finalized on or about October 03, 2024, with a tentative listing on the NSE SME scheduled for October 07, 2024.

The share price for Saj Hotels is set at ₹65 per equity share, with a minimum lot size of 2,000 shares. This means retail investors must invest a minimum of ₹1,30,000, while High-Net-Worth Individuals (HNIs) need to invest at least ₹2,60,000 for 4,000 shares.

CORPWIS ADVISORS PRIVATE LIMITED is the book-running lead manager for the IPO, and SATELLITE CORPORATE SERVICES PRIVATE LIMITED acts as the registrar. NNM Securities Private Limited serves as the sole market maker for this issue.

Live Subscription Status

As of 11:38 AM on October 01, 2024, the live subscription status for the Saj Hotels IPO indicates a subscription of 1.97 times on its third day of the subscription period. Investors can check the real-time subscription status on the NSE website.

Allotment Date and Procedure

The allotment date for the Saj Hotels IPO is set for October 03, 2024. Investors can check their allotment status through these steps:

Visit the IPO allotment status page.

Select Saj Hotels Limited IPO from the dropdown list.

Enter your application number, PAN, or DP Client ID.

Submit the details to view your allotment status.

Objectives of the IPO

The proceeds from the Fresh Issue will be utilized for:

₹1,700.00 Lakhs for capital expenditure towards expanding existing resort properties.

₹400.00 Lakhs for funding the working capital requirements of the company.

₹332.50 Lakhs for general corporate expenses.

Financial Performance Overview

Saj Hotels has shown consistent financial performance over recent years. The revenue figures for Fiscal 2024, 2023, 2022, and 2021 were ₹1,455.49 Lakhs, ₹1,282.19 Lakhs, ₹1,287.90 Lakhs, and ₹812.14 Lakhs, respectively. The EBITDA for the same fiscal years were ₹652.57 Lakhs, ₹322.43 Lakhs, ₹412.25 Lakhs, and ₹178.97 Lakhs. Additionally, the Profit After Tax figures were ₹345.40 Lakhs, ₹347.99 Lakhs, ₹132.02 Lakhs, and ₹-120.18 Lakhs, indicating a positive growth trajectory.

For the Saj Hotels IPO, the company is issuing shares with a pre-issue EPS of ₹2.90 and a post-issue EPS of ₹2.14. The pre-issue P/E ratio stands at 22.41x, while the post-issue P/E ratio is 30.37x, compared to the industry average of 27.25x. The company’s Return on Capital Employed (ROCE) for FY24 is 26.36%, and the Return on Equity (RoAE) is 19.91%, suggesting that the IPO is fully priced.

Investment Recommendation

The Grey Market Premium (GMP) for Saj Hotels is currently indicating potential listing gains of 0%. Based on the financial performance and valuation metrics, we recommend that investors avoid the Saj Hotels Limited IPO for both listing gains and long-term investment purposes.

In summary, investors should assess their investment strategies carefully and consider the broader market dynamics before deciding to participate in the Saj Hotels IPO.

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