Saj Hotels IPO opens for subscription on September 27, 2024 and closes on October 1, 2024. The allotment for the Saj Hotels IPO is expected to be finalized on Thursday, October 3, 2024 and the shares will be listed on NSE SME EMERGE platform with tentative listing date fixed as Monday, October 7, 2024. It is a fixed price issue IPO of Rs 27.63 crores. The issue is entirely a fresh issue of 42.5 lakh shares. IPO price is ₹65 per share and the minimum lot size for an application is 2000 Shares. The minimum amount of investment required by retail investors is ₹130,000. The minimum lot size investment for HNI is 2 lots (4,000 shares) amounting to ₹260,000. The issue is Up to 42, 50,000 Lakh Shares equity shares at a face value of ₹ 10 each.
Saj Hotels Ltd. is engaged in hospitality industry and 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 focus is 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 the visitors.
Corpwis Advisors is the lead manager and Satellite Corporate Services Private Limited is the registrar for the issue. The market Maker to the issue is NNM Securities.
Equity Share Allocation
- Total Issue Size (Fresh Issue): 42,50,000 Equity Shares (aggregating up to ₹ 2,762.50 Lakhs)
- Market Maker: 2,14,000 Equity Shares
- Retail: 20,18,000 Equity Shares
- NII9 (HNI): 20,18,000 Equity Shares
- IPO Size: ₹ 2,762.50 Lakhs
- Pre-Issue: 1,18,75,000 shares
- Post Issue: 1,61,25,000 shares
- Issue Opens on: September 27, 2024
- Issue Closes on: October 1, 2024
- Tentative Listing: October 7, 2024
Objects of the Issue
- Expansion of existing property
- Funding of working capital requirements of the Company
- General Corporate Expenses
Management Explains
Mr. Rahul Maganlal Timbadia, Promoter of Saj Hotels Limited said “We provide 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. We focus 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 our visitors. We offer a range of accommodation options across various destinations, each tailored to provide comfort and convenience. Our resorts have well-appointed rooms and suites, complemented by a variety of dining venues including restaurants, bars and in-room dining services. Our dedicated team provides personalized concierge assistance, access to rejuvenating spa facilities, and a host of recreational activities to ensure a memorable stay for every visitor. Our 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, we ensure seamless execution and unforgettable experiences for our clients and their guests.”
He further added: “Additionally, we are also developing villas named, ‘Saj Villas’ in Goa. These villas have carefully curated range of 2BHK and 4BHK options for guests; whether for family vacations, group gatherings or romantic escapes. The property will also have a swimming pool for enhanced guest experience. Saj Villas provides an ideal lodging solutions tailored to diverse preferences.”
Business Model
The company manages its resorts through a combination of the following methods:
(a) Direct ownership and management of resort properties: The resorts operated by the company under the ownership model are located on freehold or leasehold land and building owned by the Company.
(b) Property managed by third-party operators: Some of the resorts or restaurant properties developed by the company are leased to various parties under operation and management agreements on contractual basis. This hybrid approach enables the management to effectively manage and operate the resorts and restaurants, leveraging both direct ownership and strategic partnerships to maximise operational efficiency and profitability.
Incorporated in early 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 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.
The Major Plus Points
- The resort offers breathtaking views of natural beauty, including majestic mountain ranges, lush valleys, and crystal-clear lakes.
- The hotel offers various amenities such as restaurants, spa, and wedding facilities. By providing these diverse options, hotels can protect against seasonal fluctuations.
- Experienced Management Personnel
- Engaging with local communities to cultivate a mutually beneficial relationship.
Financials
For the years ended on March 31, 2024, March 31, 2023, and March 31, 2022, the Company has earned revenue from operations ₹ 1,425.77 Lakhs, ₹ 1,271.37 Lakhs, and ₹ 1,283.25 Lakhs respectively. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the year ended on March 31, 2024, March 31, 2023, and March 31, 2022, were ₹ 652.60 Lakhs, 322.40 Lakhs, and ₹ 412.03Lakhs respectively.
