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Home >> Blog >> Saj Hotels IPO: Review, Valuation, Date & GMP

Saj Hotels IPO: Review, Valuation, Date & GMP

  


Saj Hotels IPO-Complete Overview

Saj Hotels IPO an SME IPO is a fixed price issue of Rs.27.63 crore by Saj Hotels Limited, which was established in February 1981. The company functions in the hospitality sector and provides a wide range of services, such as standard resort lodging, villa rentals, and restaurant and bar properties. The business offers a wide range of services to make sure that visitors have an unforgettable time.

The organization provides a selection of lodging choices in a number of locations, all of which are designed to be convenient and comfortable. Three resort properties are owned or leased by the company. One is leased to third parties, and the other two are run and controlled by Saj.

The resorts are adaptable locations for events; they may hold social gatherings, weddings, and conferences. The business has increased its reach and diversified its hospitality portfolio by investing 50% of its capital in My Own Rooms Dot In Private Limited.

This Saj Hotels IPO is to be launched on 27 September 2024, and its ‘initial public offering’ will end on 01 October 2024. 

Saj Hotels IPO Overview

The Rs.27.63 crore new SME IPO consists of an entirely fresh issue of 42.5 lac Shares. 

This upcoming IPO date is from September 27-October 01, 2024. Saj Hotels IPO price is Rs.65 for each Share. 

The expected IPO listing date is on Monday, 07 October 2024, and listing at NSE and SME.

To open a demat account and apply for the IPO, Click Here.

Company Financial

The company’s revenue rose by 13.52% and PAT fell by -3.11% during FYs ending 31 March 2024 and 31 March 2023.

(Amount in Lac)

Period

31 Mar 2024

31 Mar 2023

31 Mar 2022

Total Assets 

9,808.46

9,892.53

9,626.45

Total Revenue

1,455.49

1,282.19

1,287.90

PAT

344.68

355.76

144.25

Net Worth

1,734.49

1,316.84

891.08

Total Reserves & Surplus

7,721.70

8,325.19

7,977.20

Borrowings

291.52

614.14

1,053.54

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in lac)

Net Cash Flow In Multiple Activities

FY 2023-2024

FY 2022-2023

FY 2021-2022

Net Cash Flow Operating Activities

474.91 

767.15 

332.47

Net Cash Flow Investing Activities

-92.67

-598.14

-440.68

Net Cash Flow Financing Activities

-331.83

-174.70

54.79 

 

Product-wise Revenue Breakdown 

(Amount in lac)

Particulars

FY 2023-2024

FY 2022-2023

FY 2021-2022

Revenue from bookings through online travel agents and intermediaries

155.77

132

72.77

Other 

1,270

625.47

784.11

Gross Revenue

1,425.77 

757.47

856.88

 

Property-wise Revenue Breakdown During The Last Three Fiscals

(Amount in lac)

Particulars

Mar 31 2024

Mar 31 2023

Mar 31 2022

Saj by the Lake, Malshej Owned

713.62 

521.89 

495.10

Saj in the Forest, Pench

183.51

-

-

Restaurant property (under Coast to Coast Hospitality and

Lifestyle LLP, a Subsidiary LLP)

-

187.89

220.84

Restaurant property 1 (under Perhaps Foods Pvt Limited, a Subsidiary Company)

-

46.97

136.05

Restaurant property 2

-

0.71

0.14

Restaurant property 3

-

-

4.76

Saj on the Mountain,

Mahabaleshwar 

504

503.50

413.99

Restaurant property  Goa

24.64 

10.40

12.38

Other Operating Revenue 

528.64

513.90

426.37

Gross Revenue From Operation 

1,425.77

1,271.37

1,283.25

Sale of Services 

897.13

757.47 

856.88

 

 

 

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

  • Funding the company's needs for working capital

  • The amount of capital required to expand the current resort properties

  • General corporate purposes.

 

Peers of Saj Hotels Ltd.

Company Name

Face Value (Rs.)

EPS (Rs.)

P/E (x)

Royale Manor Hotels & Industries Ltd.

10

2.21

20.59

Jindal Hotels Ltd.

10

3.43

33.90 

 

Note:-

The basic EPS of the peers is for the financial year ending 31 March 2024.

The P/E of the listed peers has been computed based on the CMP as of 12 September 2024.

Evaluation

The IPO price is Rs.65 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.2.90 from the last year, the resulting P/E ratio is 22.41x.

Considering the weighted EPS of Rs.2.65 for the last three years, the P/E ratio is 24.53x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 27.25x.

 

Particulars

P/E Ratio (x)

Highest 

33.90

Lowest 

20.59

Average

27.25

In simple words, the P/E ratio of Saj IPO (22.41x), compared with the industry’s average P/E of 27.25x, has an undervaluation (on a P/E Ratio basis only). Hence the price of the Share seems fairly (fully) priced for the investors when considered based on the average P/E ratio of the industry. 

 

 IPO's Strengths 

  • Skilled resort developers and management team.

  • Efficient use of resources.

  • Resort properties' locations and service standards.

  • Opportunities to expand our resort properties.

  • Generating income through a variety of sources.

  • Complimentary offerings.

 

IPO’s Weaknesses

  • 3 Resorts are among the few properties available.

  • Risk of geographic concentration.

  • Fierce rivalry within the hospitality sector.

  • Economic downturns have an impact on tourism and travel.

  • Variations in demand according to season.

 

Saj Hotels IPO GMP Today

Saj Hotels IPO GMP is Rs.0 as of 26 September 2024. With a price of Rs.65 per Share, the estimated IPO listing price is Rs.65 at the time of writing this information.

IPO Timetable (Tentative)

The IPO date is from September 27 to October 01, 2024, with allotment on October 03, refund initiation on October 04, and listing on October 07, 2024.

Events 

Date

IPO Opening Date

September 27, 2024

IPO Closing Date

October 01, 2024

IPO Allotment Date 

October 03, 2024

Refund Initiation 

October 04, 2024

IPO Listing Date

October 07, 2024

 

Saj Hotels IPO Details 

The IPO with a Face Value of Rs.10 per share offers a total issue size of 4,250,000 Shares (Rs.27.63 Cr).

IPO Opening & Closing date 

September 27, 2024 to October 01, 2024

Face Value 

Rs.10 per Share

Issue Price

Rs.65 per Share.

Lot Size

2000 Shares

Issue Size

4,250,000 Shares (Rs.27.63 Cr)

Offer for Sale 

NA.

Fresh Issue 

4,250,000 Shares (Rs.27.63 Cr)

Listing at

NSE, SME

Issue Type 

Fixed Price Issue IPO

Registrar 

Satellite Corporate Services Private Limited 

Saj Hotels IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (2000 Shares) amounting to Rs.1,30,000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (4000 Shares) amounting to Rs.2,60,000.

Minimum Lot Investment (Retail) 

1 Lot

Maximum Lot Investment (Retail) 

1 Lot

HNI (Min)

2 Lots

 

Saj Hotels IPO Reservation (% of Net Issue)

Other’s Portion

50%

Retail’s Portion

50%

 

Promoters And Management of Saj Hotels Ltd.

  • Rahul Maganlal Timbadia

  • Kartik Maganlal Timbadia

  • Karna Kartik Timbadia

Pre-Issue Promoter Shareholding

84.12%

Post-Issue Promoter Shareholding

61.94%

IPO Lead Managers

  • Corpwis Advisors Private Limited

Dividend Policy

The company has not paid any dividends for the period as per the restated financial statement.

Conclusion

The company has a B2B2C business model and is in the hospitality industry. After the pandemic, its financial performance improved gradually but steadily. However, because of the excessive rains and ongoing growth plans, it had a slight setback for FY24. The continued popularity of hospitality counters looks well for this issue.

Saj Hotels IPO is showing a 0% gain or loss in its listing price in the grey market as of the date of writing this content. Hope this blog helped you with the information you were seeking.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

Disclaimer: 

The content is purely for educational and information purposes only. We do NOT encourage/advise/suggest our active readers to be involved in any kind of buying or selling securities activities. Always consult your eligible financial advisor for investment-related decisions. The author does NOT through this blog intend to involve readers in trading.  

Click Here to stay updated with the Upcoming IPOs.

 

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Frequently Asked Questions

+
+

The IPO's total issue size is 4,250,000 Shares (Rs.27.63 Cr).

+

The IPO opening date is September 27, 2024

+

October 07, 2024.



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