Saj Hotels' Stock Struggles Post-Debut On NSE SME

New Delhi, Oct 7 (KNN) Saj Hotels' shares were trading at Rs 52.25 on the National Stock Exchange (NSE) SME, reflecting a discount of 19.62 per cent compared to the initial public offering (IPO) price of Rs 65.

The stock debuted at Rs 55, indicating a discount of 15.38 per cent from the IPO price, and was frozen at its lower limit of 5 per cent relative to its listing price.

During trading, the share price reached a high of Rs 57.75 and a low of Rs 52.25, with approximately 5.80 lakh shares exchanged on the counter.

The IPO of Saj Hotels was well-received, being subscribed 5.16 times. It opened for bidding on September 27 and closed on October 1, 2024, with the share price set at Rs 65.

The offering included a fresh issuance of 42,50,000 equity shares, resulting in a dilution of the promoter and promoter group shareholding from 84.12 per cent to 61.94 per cent.

The company plans to utilise the net proceeds from the IPO to address capital expenditure needs for expanding its existing resort properties, to fund long-term working capital requirements, and for general corporate purposes.

Operating within the hospitality industry, Saj Hotels provides a diverse range of services across B2B, B2B2C, and B2C sectors.

Its portfolio features traditional resorts, villa rentals, and restaurant and bar properties, aimed at delivering comfort and convenience to guests.

The resorts offer well-appointed rooms, multiple dining venues, and facilities for hosting events such as conferences, weddings, and social gatherings.

The company currently operates three resorts located in Mahabaleshwar, Pune, and Madhya Pradesh, employing a total of 144 staff members.

Revenue contributions from the resorts indicate that Saj by the Lake (Malshej Ghat) generated 50 per cent of the total revenue, followed by Saj on the Mountain (Mahabaleshwar) at 35.35 per cent, and Saj in the Forest (Pench, Madhya Pradesh) accounting for the remaining 12.87 per cent.

(KNN Bureau)