Saj Hotels Shares Open Weak, Debut with 15.4% Discount at ₹55 on NSE SME

Saj Hotels had a disappointing start in the stock market today, October 7, as its shares opened at ₹55 each on the NSE SME, reflecting a 15.4% discount from the issue price of ₹65 per share. The company’s initial public offering (IPO), which was open for subscription from September 27 to October 1, 2024, saw a lukewarm response from investors.

Despite the IPO being subscribed five times, the overall interest was significantly lower compared to other recent small and medium enterprise (SME) IPOs, which received much more enthusiastic reactions from investors.

ADVERTISEMENT

This IPO consisted entirely of a fresh issue of 42.5 lakh newly issued shares, with no offer-for-sale component involved.

Saj Hotels plans to use the funds raised from the IPO for various purposes, including capital expenditure for expanding existing resort properties, funding working capital needs, and covering general corporate expenses.

About Saj Hotels

Saj Hotels operates in the hospitality industry, offering a diverse range of business-to-business (B2B), business-to-customer (B2B2C), and business-to-customer (B2C) hospitality services. Their portfolio includes everything from traditional resort accommodations to villa rentals and restaurant and bar properties.

The company aims to provide comprehensive services to guests, which include food and beverage options, recreational facilities, and event hosting capabilities. This commitment reflects their goal of ensuring a memorable experience for visitors.

Saj Hotels offers a variety of accommodation options across different locations, each designed for comfort and convenience. Their resorts feature well-appointed rooms and suites and various dining venues, including restaurants, bars, and in-room dining services.

According to their Draft Red Herring Prospectus (DRHP), the resorts also serve as versatile event venues, capable of hosting various gatherings such as conferences, weddings, and social events. The company provides comprehensive event planning and management services to ensure seamless execution and unforgettable experiences for clients.

The company manages its resorts using a combination of methods. It directly owns and manages properties located on freehold or leasehold land and buildings owned by the company. Additionally, they have developed resort and restaurant properties that are leased to third-party operators under operation and management agreements, as outlined in their DRHP report.