About Saj Hotels IPO

Incorporated in February 1981, Saj Hotels Limited operates in the hospitality industry, offering a diverse range of services, including traditional resort accommodations, villa rentals, and restaurant and bar properties. The company owns or leases three resort properties, two of which are managed and operated by Saj, while one is leased to others. The resorts are versatile event venues, capable of hosting conferences, weddings, and social events. As of May 2024, the company has 144 employees in various departments.

The Objectives of the Issue

Saj Hotels Limited intends to utilise the Net Proceeds from the Issue towards the following objectives:

1. Capital Expenditure Requirements towards the Expansion of existing resort properties
2. Funding of working capital requirements of the Company
3. General Corporate Expenses

Highlights of Saj Hotels IPO

Saj Hotels IPO is set to launch with a fixed price issue of ₹27.63 crores. The issue is entirely fresh. Here are the key details of the IPO:

• The IPO opens for subscription on 27th September 2024 and closes on 1st October 2024.
• The allotment is expected to be finalised on 3rd October 2024.
• Refunds will be initiated on 4th October 2024.
• Credit of shares to Demat accounts is also expected on 4th October 2024.
• The company will tentatively list on NSE SME on 7th October 2024.
• The issue price is fixed at ₹65 per share.
• The fresh issue comprises 42.5 lakh shares, aggregating to ₹27.63 crores.
• The minimum lot size for the application is 2000 shares.
• Retail investors need to invest a minimum of ₹130,000.
• The minimum investment for HNI is 2 lots (4,000 shares), amounting to ₹260,000.
• Corpwis Advisors Private Limited is the book running lead manager for the IPO.
• Satellite Corporate Services Private Limited serves as the registrar.
• Nnm Securities is the market maker for the IPO.

Saj Hotels IPO Key Dates

The cut-off time for UPI mandate confirmation is 5:00 PM on 1st October 2024. This deadline is crucial for investors to ensure their applications are processed successfully. Investors are advised to complete their applications well before this deadline to avoid any last-minute technical issues or delays.

Saj Hotels IPO Issue Details/Capital History

Saj Hotels IPO is scheduled from 27th September to 1st October 2024, with a fixed price of ₹65 per share and a face value of ₹10. The total issue size is 42,50,000 shares, raising up to ₹27.63 crores through a fresh issue. The IPO will be listed on NSE SME. The pre-issue shareholding is 1,18,75,000 shares.

Saj Hotels IPO Allocation & Minimum Investment Lot Size

The IPO shares are allocated across different investor categories as follows:

Investors can place bids for a minimum of 2000 shares, with additional bids required in multiples of this figure. The table below illustrates the minimum and maximum investment amounts for retail investors and HNIs, expressed in shares and monetary values.

SWOT Analysis: Saj Hotels Ltd

Strengths:

• Long-standing presence in the hospitality industry since 1981
• Diverse range of services including resort accommodations and event venues
• Strategic locations offering scenic views and natural beauty
• Multiple amenities to cater to various guest needs

Weaknesses:

• Limited number of properties (3 Resorts)
• Geographical concentration risk

Opportunities:

• Expansion of existing resort properties
• Growing demand for destination weddings and corporate events
• Potential for further diversification in the hospitality sector

Threats:

• Intense competition in the hospitality industry
• Economic downturns affecting travel and tourism
• Seasonal fluctuations in demand

Financial Highlights: Saj Hotels Ltd

Below are the consolidated financial results for the Fiscal years FY24, FY23, and FY22:

Saj Hotels Limited has shown moderate growth in recent years. The company's revenue increased by 13.52% between the financial year ending with March 31, 2024 and March 31, 2023, while profit after tax (PAT) dropped slightly by 3.11% in the same period.

Assets have remained relatively stable, increasing marginally from ₹9,626.45 lakhs in FY22 to ₹9,808.46 lakhs in FY24, representing a growth of about 1.89% over two years.

Revenue has seen steady growth, rising from ₹1,287.90 lakhs in FY22 to ₹1,455.49 lakhs in FY24, marking an increase of 13% over two years.

The company's profitability has improved significantly since FY22. Profit After Tax increased from ₹144.25 lakhs in FY22 to ₹344.68 lakhs in FY24, representing a substantial growth of 138.9% over two years, despite the slight dip from FY23 to FY24.

et Worth has shown strong growth, increasing from ₹891.08 lakhs in FY22 to ₹1,734.49 lakhs in FY24, a growth of about 94.6% over two years.

Total Borrowings have decreased significantly from ₹1,053.54 lakhs in FY22 to ₹291.52 lakhs in FY24, which represents a decrease of about 72.3% over two years. This substantial reduction in borrowings, coupled with increasing Net Worth, suggests improving financial health and debt management.

The company's financial performance shows a trend of steady revenue growth and improved profitability compared to FY22, although there was a slight dip in PAT from FY23 to FY24. The significant increase in Net Worth and substantial decrease in borrowings indicate a strengthening financial position. Investors should consider these trends along with the company's growth strategy and the evolving hospitality sector when evaluating the IPO.