Saj Hotels Limited is coming up with an IPO with a fresh issue of 42,50,000 shares worth INR 27.63 crores. The company aims to meet capital expenditure, working capital requirements, and funds for general corporate purposes.
Saj Hotels IPO – Important Dates
| Saj Hotels Limited IPO Date | September 27, 2024 to October 1, 2024 |
| Saj Hotels Limited IPO Listing Date | October 7, 2024 |
| Saj Hotels Limited IPO Price | INR 65 per share |
| Saj Hotels Limited IPO Lot Size | 2000 Shares |
| Saj Hotels Limited IPO Total Issue Size | INR 27.63 crores |
| Saj Hotels Limited IPO Basis of Allotment | October 3, 2024 |
| Saj Hotels Limited IPO Initiation of Refunds | October 4, 2024 |
| Saj Hotels Limited IPO Credit of Shares to Demat | October 4, 2024 |
| Saj Hotels Limited IPO Issue Type | Fixed Price Issue |
| Saj Hotels Limited IPO Listing At | NSE SME |
Read more about Saj Hotels Limited IPO GMP
Saj Hotels Limited IPO – Company Profile
Saj Hotels company is engaged in the Hospitality industry. The company provides a diverse portfolio of Business-to-Business (B2B), Business-to-Business-to-Customer (B2B2C), and Business-to-Customer (B2C) hospitality offerings, spanning from traditional resort accommodation to villa rentals and restaurant and bar properties.
The company focuses on providing comprehensive services to guests, including food and beverage options, recreational facilities, and event-hosting capabilities, reflecting a commitment to ensuring a memorable experience for its visitors.
The resorts serve as versatile event venues, equipped to host a wide array of gatherings including conferences, weddings, and social events. With comprehensive event planning and management services, they ensure seamless execution and unforgettable experiences for their clients and their guests.
As of the date of this Prospectus, they have resorts across the following three destinations-
| Resort | Address | No of rooms/keys |
| Saj on the Mountain, Mahabaleshwar (SOTM) | Saj on the Mountains, Survey number 18, Mahabaleshwar Panchgani Road, Mahabaleshwar, Satara, Maharashtra – 412806 | 78 |
| Saj by the Lake, Malshej (SBTL) | Saj by the Lake, Survey number 171/2, 173/1A, 173/1B and 173/2A Malshej, Karanjale, Taluka Junnar, District Pune, Maharashtra – 412409 | 35 |
| Saj in the Forest, Pench (SITF) | Saj in the Forest, Survey number 131, Avarghani, Kurai, Sivani, Madhya Pradesh – 480881 | 17 |
Saj Hotels Ltd IPO Fundamental Analysis
Saj Hotels exhibits stable revenue, controlled expenses, and growing profitability. The reduction in debt and improved RoNW suggest strong financial management. Given the steady increase in shareholder value (NAV) and reduced financial risk, the company’s fundamentals support a positive investment outlook.
Revenue and Expenses:
- Revenue has been relatively stable, with a slight increase from ₹1,283.25 lakhs in 2022 to ₹1,425.77 lakhs in 2024.
- Expenses decreased significantly in 2024 (₹999.02 lakhs), leading to better cost management compared to 2022 and 2023.
Profit and EPS:
- Profit after tax grew from ₹144.25 lakhs in 2022 to ₹344.68 lakhs in 2024, showing strong profit generation despite modest revenue growth.
- Diluted EPS improved from ₹1.21 in 2022 to ₹2.90 in 2024, reflecting higher earnings per share.
Return on Net Worth (RoNW):
- RoNW improved from 14.82% in 2022 to 19.91% in 2024, indicating better profitability relative to shareholder equity, although there was a slight dip compared to 2023.
Net Asset Value (NAV):
- NAV per share rose consistently from ₹7.50 in 2022 to ₹14.61 in 2024, indicating growing shareholder value.
Assets and Liabilities:
- Total assets remained relatively stable, with slight fluctuations over the three years.
- Total liabilities decreased from ₹1,411.75 lakhs in 2022 to ₹899.25 lakhs in 2024, showing reduced leverage and financial risk.
Debt Equity Ratio:
- The debt-to-equity ratio dropped significantly from 1.18 in 2022 to 0.17 in 2024, reflecting the company’s strong efforts to reduce debt and improve its financial health.
Saj Hotels IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 March 2024 |
| Revenue (₹ in lakhs) | 1283.25 | 1271.37 | 1425.77 |
| Equity (₹ in lakhs) | 8214.70 | 8562.69 | 8909.21 |
| Expenses (₹ in lakhs) | 1077.07 | 1203.19 | 999.02 |
| Profit and Loss After Tax (₹ in lakhs) | 144.25 | 355.76 | 344.68 |
| Diluted EPS only (₹) | 1.21 | 3.00 | 2.90 |
| Return on Net Worth (%) | 14.82 | 26.43 | 19.91 |
| NAV per Equity Share (₹) | 7.50 | 11.09 | 14.61 |
| Total Assets (in lakhs) | 9626.45 | 9892.53 | 9808.46 |
| Total Liabilities (in lakhs) | 1411.75 | 1329.84 | 899.25 |
| Debt Equity Ratio | 1.18 | 0.47 | 0.17 |
Saj Hotels Limited IPO Peer Comparison
Saj Hotels Limited, Royale Manor Hotels, and Jindal Hotels have varying financial metrics. Saj Hotels has a P/E ratio of 22.41, EPS of ₹2.90, and RoNW of 19.91%. Royale Manor’s P/E is 20.59, EPS ₹2.21, and RoNW 7.67%. Jindal Hotels shows a P/E of 33.90, EPS ₹3.43, and RoNW 11.97%.
| Company | Face Value per Equity Share (₹) | P/E Ratio | EPS (₹) | RoNW (%) |
| Saj Hotels Limited | 10 | 22.41 | 2.90 | 19.91 |
| Royale Manor Hotels | 10 | 20.59 | 2.21 | 7.67 |
| Jindal Hotels | 10 | 33.90 | 3.43 | 11.97 |
Saj Hotels Ltd IPO Objective
The main objective of Saj Hotels is to use INR 17 crores to expand its resort properties at Saj by the Lake, Malshej, and Saj in the Forest, Pench. An additional INR 4 crores will be allocated to meet working capital needs, with the remaining funds going towards general corporate purposes, including operational expenses, project development, and enhancing business capabilities.
- To meet capital expenditure: The company aims to expand the existing resort property to meet the increasing demand. The company, as part of its strategic initiative, is expanding 2 (Two) of its existing properties i.e. (i) Saj by the Lake, Malshej, and (ii) Saj in the Forest, Pench. For the said purpose, the company plans to utilise INR 17 crores.
- To meet working capital requirements: With the expansion of business of the company, the company will be in need of additional working capital requirements. For the said purpose, the company plans to utilise INR 4 crores.
- General Corporate Purpose: The company will deploy the balance of funds for general corporate purposes, including meeting operating expenses and initial development costs for various projects, strengthening business development and marketing capabilities, and addressing unforeseen exigencies in ordinary operations.
Saj Hotels IPO Risks And Challenges
Saj Hotels’ risk includes negative cash flows faced by the company previously, and future occurrences of the same could impact its operations, revenue, profitability, and growth plans. Additionally, the proximity of one property to Pench National Park may subject it to regulatory restrictions. Failure to obtain or renew necessary licenses and permits could also negatively affect business operations.
- The company has experienced negative cash flows in the past. Any negative cash flows in the future could adversely affect the results of operations and consequently the revenues, profitability, and growth plans.
- One of the properties is situated in proximity to the Pench National Park and may be subject to regulatory as well as government restrictions which might adversely affect the business and financial position.
- The business requires to obtain and renew certain registrations, licenses, and permits from government and regulatory authorities and the failure to obtain and renew them in a timely manner may adversely affect the operations of the business.
Saj Hotels Ltd IPO – Industry & Market Potential
Overall hotel performance across the Asia Pacific markets has continued a recovery in 2023, as most markets removed the last of their health and travel protocols in the first half of the year. This includes the much-anticipated end of travel restrictions for China, such as the removal of quarantine requirements, the resumption of outbound group travel to various countries and issuing of foreign tourist visas, and the removal of pre-departure COVID-19 antigen test requirements.
Most markets experienced a full recovery of domestic travel, followed by international travel. This trend was clearly reflected by the strong growth in Chinese outbound international flight bookings during the national public holidays in Q2 and Q3. The top five markets for growth in hotel performance were Beijing, Taipei, Shanghai, Bali, and Tokyo, while Maldives and Langkawi were more static markets. Looking forward to 2024, hotel performance in Asia Pacific is expected to improve.
Saj Hotels Limited IPO – Type of Offer
Saj Hotels Limited is launching an IPO with a fresh issue of 42,50,000 shares, valued at INR 27.63 crores. The company plans to use the proceeds for capital expenditure, working capital needs, and general corporate purposes.
Saj Hotels IPO Offer Size
The offer size of Saj Hotels Limited’s IPO includes a fresh issue of 42,50,000 shares, amounting to INR 27.63 crores. The company intends to utilize the proceeds for capital expenditure, working capital needs, and general corporate purposes.
Saj Hotels Limited IPO Allotment Structure
Saj Hotels Limited’s IPO allotment structure includes a category for Retail Individual Investors (RII) with investments below ₹2 lakhs, a category for other investors exceeding ₹2 lakhs, and a reservation of 2,14,000 shares for Market Makers.
- Retail Individual Investors (RII): These individual investors apply for shares with a total value of less than Rs.2 lakhs.
- Other than retail individual investors: Such applications where the value exceeds INR 2 lakhs.
- Market Makers Reservation: A certain percentage or number of shares is reserved for market makers. The company has set aside 2,14,000 shares for this purpose.
How to apply for the Saj Hotels IPO?
To apply for the Saj Hotels Limited IPO through Alice Blue, follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Saj Hotels Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Saj Hotels Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
Read more about Saj Hotels IPO Day 1 Subscription
How do you check Saj Hotels IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Saj Hotels Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Saj Hotels Limited IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Saj Hotels Limited IPO:
● Registrar’s Website: Visit the website of Satellite Corporate Services Private Limited, the registrar of the Saj Hotels Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status.
Read more about Saj Hotels IPO Day 2 Subscription
Saj Hotels Ltd IPO Offer Registrar
The registrar for the Saj Hotels Limited IPO is Satellite Corporate Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Satellite Corporate Services Private Limited
A-106/107 Dattani Plaza, East West Indl. Compound
Andheri Kurla Road, Safed Pool, Sakinaka
Mumbai, Maharashtra – 400072
E-mail: [email protected]
Website: www.satellitecorporate.com
Saj Hotels IPO – FAQs
1. What is the allotment date of the Saj Hotels IPO?
The allotment date of the Saj Hotels Limited IPO is October 3, 2024.
2. What is the price band of the Saj Hotels IPO?
The price band of the issue is INR 65 per share.
3. What is the size of the Saj Hotels IPO?
The offer size of Saj Hotels Limited’s IPO includes a fresh issue of 42,50,000 shares, amounting to INR 27.63 crores. The company intends to utilize the proceeds for capital expenditure, working capital needs, and general corporate purposes.
4. What is the listing date of the Saj Hotels IPO?
The listing date of Saj Hotels Limited’s IPO is October 7, 2024.
