Saj Hotels shares list at 15% discount to IPO price on NSE SME platform; check details

Making a tepid debut, shares of hospitality firm Saj Hotels Limited were listed at a 15% discount to the issue price on the NSE SME platform on Monday, October 7. Saj Hotels shares opened at ₹55 per piece, a 15% loss over the issue price of ₹65 apiece.

The stock later recovered some of the losses to hit the upper limit at ₹57.75 per share. Shares of the hospitality firm touched the lower limit of ₹52.25 apiece on the NSE in volatile trade in early deals.

More than 4 crore shares changed hands on the NSE SME platform, and the market valuation stood at ₹92.32 crore.

Saj Hotels IPO details

Saj Hotels Ltd launched its IPO on September 27 on the NSE SME platform to raise ₹27.63 crore from public investors. The public issue comprised a fresh issue of 42.5 lakh shares and no offer for sale component.

The company fixed the price at ₹65 per share for the IPO. The minimum lot size was 2,000 shares, requiring an investment of ₹1,30,000 for retail investors.

At the close of bidding on October 1, the public offer was subscribed 5.44 times.

The company received bids for more than 2.19 crore shares against 40.36 lakh shares offered.

The non-retail portion was booked more than 2 times as applications for more than 45 lakh shares were received. The Non-Institutional Investors (NIIs) placed bids for a total of 41,94,000 equity shares and Qualified Institutional Buyers for 3.08 lakh shares. The retail portion of the issue was subscribed 8.65 times.

The company offered 20.18 lakh equity shares to retail investors, 20.18 lakh equity shares to non-retail or others, and 2.14 lakh equity shares to market makers. The company finalised the share allotment status on October 3.

Saj Hotels IPO objective

Saj Hotels plans to use IPO proceeds to expand its resort properties and meet its working capital needs. According to the RHP, the company will utilise ₹17 crore of IPO proceeds for funding expansion projects.

Saj Hotels plans to expand its existing resort property to meet the increasing demand for events and other services. As part of its strategic initiative, the company is expanding two of its existing properties—Saj by the Lake, Malshej, and Saj in the Forest, Pench. The company will add 20 rooms in Saj by the Lake, Malshej, and 26 rooms in Saj on the Mountain and Pench, respectively. The total cost of expansion is around ₹20 crore.

The company has proposed to use ₹4 crore for funding working capital requirements.