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)

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in lac)

 

Product-wise Revenue Breakdown 

(Amount in lac)

 

Property-wise Revenue Breakdown During The Last Three Fiscals

(Amount in lac)

 

 

 

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.

 

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.

 

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.

 

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).

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.

Saj Hotels IPO Reservation (% of Net Issue)

 

Promoters And Management of Saj Hotels Ltd.

• Rahul Maganlal Timbadia

• Kartik Maganlal Timbadia

• Karna Kartik Timbadia

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.  

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