Saj Hotels is a prominent player in the hospitality industry, offering a diverse portfolio of Business-to-Business (B2B), Business-to-Business-to-Customer (B2B2C), and Business-to-Customer (B2C) hospitality services. Their offerings range from traditional resort accommodations to villa rentals and restaurant and bar properties, catering to a wide spectrum of customer needs.

The 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 Thursday, October 03, 2024, with a tentative listing on the NSE SME set for Monday, October 07, 2024.

The share price for the Saj Hotels IPO is fixed at ₹65 per equity share, with a minimum lot size of 2,000 shares. Retail investors must invest a minimum of ₹1,30,000, while High-Net-Worth Individuals (HNIs) are required to invest a minimum of 2 lots (4,000 shares), totaling ₹2,60,000.

CORPWIS ADVISORS PRIVATE LIMITED is the book-running lead manager, while SATELLITE CORPORATE SERVICES PRIVATE LIMITED serves as the registrar for the issue. NNM Securities Private Limited is the sole Market Maker for the Saj Hotels IPO.

The Grey Market Premium (GMP) for Saj Hotels Limited is currently expected to be around ₹0, based on the company’s financial performance. It’s essential to note that no real trading occurs based on the GMP, hence no authentic price discovery can be made before the official listing of shares on the stock exchange. The GMP is a reflection of demand and supply in an unregulated market, and it is shared for educational and informational purposes only.

As of 04:38 PM on September 27, 2024, the live subscription status shows that the Saj Hotels Limited IPO has been subscribed 0.50 times on its first day of the subscription period. Investors can check the live subscription status at the NSE for real-time updates.

The allotment date for the Saj Hotels IPO is set for October 03, 2024. Investors can easily check their allotment status online by navigating to the IPO allotment status page, selecting Saj Hotels Limited IPO from the dropdown list, and entering their application number, PAN, or DP Client ID.

The proceeds from the fresh issue will be utilized for the following objectives:

₹1,700.00 Lakhs will be allocated for capital expenditure towards the expansion of existing resort properties.

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

₹332.50 Lakhs will be dedicated to general corporate expenses.

Saj Hotels IPO Review Saj Hotels operates under the leadership of experienced promoters, including Rahul Maganlal Timbadia, Kartik Maganlal Timbadia, and Karna Kartik Timbadia.

From a financial perspective, the company's revenue figures for Fiscal years 2021 to 2024 are as follows: ₹1,455.49 Lakhs in Fiscal 2024, ₹1,282.19 Lakhs in Fiscal 2023, ₹1,287.90 Lakhs in Fiscal 2022, and ₹812.14 Lakhs in Fiscal 2021. The EBITDA for these years has also shown positive growth, with ₹652.57 Lakhs in Fiscal 2024, compared to ₹322.43 Lakhs in Fiscal 2023, ₹412.25 Lakhs in Fiscal 2022, and ₹178.97 Lakhs in Fiscal 2021. The Profit After Tax figures are ₹345.40 Lakhs for Fiscal 2024, ₹347.99 Lakhs for Fiscal 2023, ₹132.02 Lakhs for Fiscal 2022, and a loss of ₹-120.18 Lakhs in Fiscal 2021. This consistent performance indicates steady growth.

For the Saj Hotels IPO, the company is issuing shares at 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 P/E ratio of 27.25x. The company's ROCE for FY24 is 26.36%, and RoAE is 19.91%, indicating that the IPO is fully priced.

With the GMP suggesting potential listing gains of 0%, and considering the financial performance alongside the valuation of the IPO, we recommend that investors avoid the Saj Hotels Limited IPO for quick listing gains or long-term investment.

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