October 7, 2024
New Delhi, India
NSE SME
Saj Hotels made a disappointing debut on the stock market on October 7, 2024, with shares opening at ₹55, representing a 15.4% discount to the issue price of ₹65 per share. The listing came after the IPO, which was open for subscription from September 27 to October 1, 2024, garnered a modest response, with the issue being subscribed 5 times.
Subdued IPO Performance
While Saj Hotels’ IPO saw some interest, the overall subscription levels were significantly lower compared to other recent SME IPOs that received stronger investor enthusiasm. The IPO consisted entirely of a fresh issue of 42.5 lakh shares, with no offer-for-sale component.
IPO Utilization Plan
The company intends to use the funds raised from the IPO for:
- Capital expenditure to expand its existing resort properties
- Working capital needs
- General corporate purposes
Overview of Saj Hotels
Saj Hotels operates within the hospitality industry, offering a wide variety of accommodation options across different destinations. The company provides a mix of business-to-business (B2B), business-to-customer (B2B2C), and business-to-consumer (B2C) services, ranging from traditional resort stays to villa rentals and restaurant properties.
Key Services
The company focuses on offering comprehensive services to its guests, which include:
- Accommodation: Well-appointed rooms and suites tailored for comfort
- Dining Options: Multiple dining venues, including restaurants, bars, and in-room dining services
- Recreational Facilities: On-site amenities for relaxation and entertainment
- Event Hosting: Equipped venues for conferences, weddings, and social events, along with event planning and management services to ensure a seamless experience.
Also Read: NSE SME: HVAX Technologies IPO Lists with 6% Premium at ₹486
Resort Management Strategy
Saj Hotels manages its properties using a combination of ownership and third-party operations:
- Owned Resorts: Properties that the company either owns directly or manages on freehold or leasehold land.
- Leased Properties: Some resorts and restaurants are leased to third-party operators under operation and management agreements, as per the company’s Draft Red Herring Prospectus (DRHP).
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