Saj Hotels SME IPO Opens for Subscription: Ipo Gmp Stand at 0 (0.0%)

The Saj Hotels SME IPO has opened for bookings today, with the issue set to close on October 1, 2024. The company aims to raise ₹27.6 crore through this offering and plans to list its shares on the NSE SME platform. Here are 10 important things investors need to know before subscribing to this public issue:

1. IPO Size of Saj Hotels

The entire IPO is a fresh issue of 42.5 million shares, with the company planning to raise ₹27.6 crore through this public offering. All the proceeds will go towards the company, with no offer for sale (OFS) by existing shareholders.

2. Saj Hotels IPO Price Band

The company has set a price band of ₹435-458 per share, and interested investors can place bids for 300 shares per lot. The minimum investment would therefore be ₹1,30,500 at the lower end of the price band.

3. Grey Market Premium (GMP)

As of now, there is no reported grey market premium (GMP) for Saj Hotels’ shares in the unlisted market. Investors should take note that GMP can sometimes give an indication of market sentiment, but it is not an assured metric for future performance.

4. About Saj Hotels

Saj Hotels operates in the hospitality industry, offering a mix of B2B (business-to-business), B2B2C (business-to-business-to-customer), and B2C (business-to-customer) services. Their portfolio includes traditional resort accommodations, rental villas, and restaurant properties, catering to various customer needs.

5. Industry Overview

The Indian hotel industry is poised for growth. In FY20, the overall market, which includes domestic, inbound, and outbound travel, was valued at $32 billion. By FY27, the market is projected to reach $52 billion, driven by the growing demand for both business and leisure travel.

6. Financial Performance of Saj Hotels

For the financial year ending March 2024, Saj Hotels reported total revenue of ₹14.25 crore and a net profit of ₹3.45 crore. This represents a healthy profit margin, showcasing the company’s financial stability as it looks to expand further through its IPO.

7. Purpose of the IPO

Saj Hotels intends to use the net proceeds from this IPO for several purposes:

• Expansion of its existing hospitality assets.
• Financing working capital needs to support business growth.
• Other general corporate purposes to improve operational efficiency.

8. Lead Manager and Registrar

Corpwis Advisors is acting as the lead manager for the issue, guiding the process from start to finish. Satellite Corporate Services is the registrar, responsible for handling applications and overseeing the allocation process.

9. IPO Structure

The issue is structured with 50% of the offer being reserved for retail investors, while the remaining 50% is set aside for non-retail investors, which include institutional investors and high-net-worth individuals.

10. Key Dates to Remember

The IPO opened for subscription on September 27, 2024, and will close on October 1, 2024. The final share allotment is expected to be completed by October 3, 2024, after which the shares will be listed on the NSE SME platform.

Investors are encouraged to evaluate the company’s financial health, growth potential, and market conditions before making a decision. This IPO could offer a unique opportunity to tap into the growing Indian hospitality sector.