Saj Hotels IPO Opens For Subscription — Check GMP, Price Band And More

The initial public offering of Saj Hotels Ltd. opened for bidding on Friday. The offering is a fixed-price public offer, consisting entirely of a fresh issue of 42.5 lakh shares worth Rs 27.63 crore. Investors can apply for shares in this NSE SME IPO till Oct. 1.

The price band of the offering is set at Rs 65 apiece. Retail investors can bid in the public offer with a minimum lot size of 2,000 shares, aggregating to an investment of Rs 1,30,000.

The company has appointed Satellite Corporate Services Pvt. as the registrar for its issue.

Corpwis Advisors Pvt. is serving as the book-running lead manager, while NNM Securities Pvt. is acting as the market maker for the SME IPO.

Saj Hotels has reserved 50% of the net issue for retail investors.

The allotment of shares in the Saj Hotels IPO will be finalised on Oct. 3. This will be followed by the crediting of shares into the Demat account of successful bidders and the initiation of refunds for non-allottees on Oct. 4.

Shares of Saj Hotels Ltd. are scheduled to be listed on the NSE SME platform, Emerge, tentatively on Oct. 7.

Saj Hotels Ltd.'s promoters—Rahul Maganlal Timbadia, Kartik Maganlal Timbadia and Karna Kartik Timbadia—currently hold 84.12% stake in the company. Following the public offer, their shareholding will be diluted to 61.94%.

The grey market premium of Saj Hotels IPO was nil as of 10:00 a.m. on Sept. 27, indicating a possible flat listing. The GMP on the stock may be updated as the bidding window opens for the IPO.

However, investors must note that GMP is highly speculative and not an official listing price.

Saj Hotels Ltd. operates in the hospitality industry, offering traditional resort accommodations, villa rentals and restaurant and bar properties. The company, incorporated in 1981, presently owns three resort properties. Two are managed and operated by Saj Hotels Ltd., while one is leased out.

The company has invested in My Own Rooms Dot In Pvt., expanding its reach and diversifying its hospitality portfolio.

Saj Hotels Ltd. plans to use the proceeds from the public offer for capital expenditure on the expansion of its resort properties. Further, a part of the money will be used for working capital requirements and general corporate purposes.

Saj Hotels Ltd. reported a revenue of Rs 14.55 crore, a 13.52% year-on-year gain from Rs 12.82 crore in the previous fiscal. The company's profit after tax, however, slipped 3.11% to Rs 3.44 crore in fiscal 2024 from Rs 3.55 crore in the previous fiscal.