Saj Hotels
Fixed Price issueSMENSE₹27.63 Cr issue
-15.38%
Listing gain over issue price
Issue size
₹27.63 Cr
1 lot at cut-off
₹1,30,000
Lot size
2,000shares
Open
27 Sep 2024
Close
01 Oct 2024
Allotment
03 Oct 2024
Listing
07 Oct 2024
Listing performance
Issue price
₹65
Listed at
₹55
Listing-day close
₹52.45
Latest price
₹27
Close on 22 Oct 2026
Listing gain
-15.38%
Return since issue
-58.46%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 27 Sep 2024 – 01 Oct 2024
- Listing date
- 07 Oct 2024
- Face value
- ₹10 per share
- Issue price
- ₹65 per share
- Lot size
- 2,000 shares
- Issue type
- Fixed Price issue
- Listing at
- NSE
- Total issue size
- ₹27.63 Cr
- Market cap at offer price
- ₹105 Cr
- Promoter holding
- 84.12% → 61.94% pre-issue → post-issue
- ISIN
- INE00MT01022
- Registrar
- Satellite Corporate Services Pvt.Ltd.
- Lead managers
- Corpwis Advisors Pvt.Ltd.
- Registered office
- Saj on the Mountains, Survey number 18, Mahabaleshwar, Panchgani Road, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 2,14,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹65
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,30,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,60,000 |
| S-HNI (max) | 7 | 14,000 | ₹9,10,000 |
| B-HNI (min) | 8 | 16,000 | ₹10,40,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
₹65 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 3.00 | 2.32 |
| P/E (×) | 21.67 | 28.02 |
| Price to book (×) | 5.86 | — |
| Market cap | — | ₹105 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 19.91%
- ROCE
- 26.36%
- Debt / equity
- 0.17
- PAT margin
- 24.23%
- NAV per share
- ₹14.61
- Price to book
- 5.86
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Saj Hotels
Saj Hotels Limited (formerly Saj Hotels Private Limited) was incorporated in 1981 and converted to a public limited company in October 2023. The company operates three core resort properties: Saj on the Mountains in Mahabaleshwar (Maharashtra), Saj by the Lake in Malshej (Maharashtra), and Saj in the Forest in Pench (Madhya Pradesh). The company also operates villa properties and a restaurant property in Goa. The company provides Business-to-Business (B2B), Business-to-Business-to-Customer (B2B2C), and Business-to-Customer (B2C) hospitality offerings including accommodation, food and beverage services, recreational facilities, spa services, and event hosting capabilities. Revenue is generated from room bookings, food and beverage sales, and other ancillary services. The company generated revenue from operations of ₹1,425.77 Lakhs for FY 2024.
Company Analysis
from RHPSaj Hotels Limited operates a portfolio of resort, villa, and restaurant properties across India, providing hospitality services spanning accommodation, food and beverage, and event hosting.
Saj Hotels Limited (formerly Saj Hotels Private Limited) was incorporated in 1981 and converted to a public limited company in October 2023. The company operates three core resort properties: Saj on the Mountains in Mahabaleshwar (Maharashtra), Saj by the Lake in Malshej (Maharashtra), and Saj in the Forest in Pench (Madhya Pradesh). The company also operates villa properties and a restaurant property in Goa. The company provides Business-to-Business (B2B), Business-to-Business-to-Customer (B2B2C), and Business-to-Customer (B2C) hospitality offerings including accommodation, food and beverage services, recreational facilities, spa services, and event hosting capabilities. Revenue is generated from room bookings, food and beverage sales, and other ancillary services. The company generated revenue from operations of ₹1,425.77 Lakhs for FY 2024.
HospitalityTourismAccommodation ServicesFood and BeverageEvent Management
Objects of the Issue
- Expansion of existing property ₹1,700.00 Lakhs p.22
- Funding of working capital requirements of the Company ₹400.00 Lakhs p.22
- General Corporate Expenses ₹332.50 Lakhs p.22
- Capital Expenditure requirements towards expansion of existing resort properties ₹1,700.00 Lakhs p.87
- Funding of Long term Working Capital requirements ₹400.00 Lakhs p.87
- General Corporate Expenses ₹332.50 Lakhs p.87
- Funding capex for development of additional rooms at Saj by the Lake, Malshej resort property p.155
- Funding capex for development of additional rooms at Saj in the Forest, Pench resort property p.155
- General corporate purposes
- General corporate purposes
Issue Structure
- Total Issue
- ₹2,762.50 Lakhs (up to 42,50,000 Equity Shares)
- Fresh Issue
- Up to 42,50,000 Equity Shares at ₹65 per share aggregating to ₹2,762.50 Lakhs
- Offer for Sale
- Not Applicable
- Price Band
- Fixed price of ₹65 per Equity Share
- Lot Size
- Minimum 2,000 Equity Shares and in multiples of 2,000 thereafter
- Face Value
- ₹10 per Equity Share
Business Model
The company earns revenue primarily from room bookings at its resort properties, food and beverage services (restaurants and bars), villa rentals, event hosting and management services, and ancillary services including spa facilities and recreational activities. The business operates on a B2B, B2B2C, and B2C model with revenue also generated through online travel aggregators.
Business Segments
Provides resort rooms and suites across three core properties with well-appointed rooms and complementary facilities including dining venues, spa facilities, and recreational activities
Operates restaurants, bars, and in-room dining services; also operates a restaurant property in Goa
Provides comprehensive event planning and management services for conferences, weddings, and social events at resort venues
Operates villa properties in Goa and leases restaurant property in Goa
Provides luxury accommodation services across multiple resort properties with rooms designed to the highest standards of comfort and sustainability
Operates in-house restaurants and bars providing food and beverage services to guests and event participants
Provides conferencing, meeting, and event hosting facilities for corporate customers and social events
Resort property with 78 rooms comprising spacious cottages and luxurious rooms, multi-cuisine vegetarian restaurant 'Fasal', coffee shop 'Unwind Café', specialty restaurant 'Barbeque Bay', in-room dining services 'Gourmet Express', spa facility 'Svaastha Spa', recreational facilities including Children's Day Park, gymnasium, and swimming pool. Currently given on lease to Mahindra Holidays & Resorts India Limited (Club Mahindra affiliate resort).
Resort property with 39 rooms (35 operational) offering different categories of rooms like Courtyard, Brick Village, Brick Village Premium and Suite Room. Includes signature Indian restaurant 'Maati Baani', 'Lake House Café', spa services combining ayurvedic, oriental and western spa treatments, swimming pool, games lounge, children's play area, courtyard lawn, parking, and conference halls for meetings and destination weddings.
Resort property with 17 rooms divided into 3 categories ('Mahua', 'Palash' and 'Sal' inspired by tree species in Pench Forest). Includes signature Indian restaurant 'Maati Baani', bar 'Baghinala Bar', recreational facilities including Backwater Safari, Jungle Safari, Bird watching, Games Lounge 'Kala Pahad', swimming pool, barbeque facilities with bonfire. Commenced operations in 2023.
Villa property development with carefully curated 2BHK and 4BHK accommodation options for family vacations, group gatherings, and romantic escapes. Includes swimming pool for enhanced guest experience.
Restaurant and bar property leased to third party (The Tamil Sunrise) for operation and management. Property generates revenue through management fees and license fees.
50% shareholding in My Own Rooms Dot In Private Limited which operates Morjim Retreat hotel in Morjim, North Goa with 27 rooms offering various room categories (Classic Double/Twin, Deluxe Double/Twin, Standard Suite), swimming pool, and other facilities.
Operates luxury resort properties with accommodation facilities, restaurants, bars, conference rooms, spas, and recreational amenities
Operates restaurants and food outlets, including partnerships in the food and beverage sector
Resort property given on lease to third party; generates property management space rental revenue
Operated and managed resort property providing room revenue, food and beverage services, and other hospitality services
Recently commenced resort property providing room revenue and other hospitality services
SWOT Analysis
Strengths
- • Established hospitality portfolio across multiple destinations(p.21)
- • Recovery momentum in Indian tourism sector post-COVID(p.21)
- • Foreign Tourist Arrivals recovery demonstrating market strength(p.21)
- • Registered trademark for brand protection(p.28)
- • Profitable operations in recent financial years(p.27)
- • Experienced promoter with significant shareholding and long-term commitment(p.76)
- • Improved financial performance with strong EBITDA margin expansion(p.104)
- • Strategic resort locations in key destinations(p.48)
- • Growing occupancy rates at properties(p.104)
- • Strong return on equity performance(p.104)
- • Diverse revenue streams from resorts with multiple amenities and services(p.160)
- • Experienced management with extensive hospitality industry background(p.160)
- • Strong community integration with majority local employment(p.160)
- • Strategic focus on sustainable architecture and eco-friendly operations(p.156)
- • Strong revenue growth trajectory with 15.34% CAGR(p.109)
- • Diversified hospitality portfolio with multiple resort properties(p.253)
- • Strong profitability with positive margins recovered post-COVID(p.261)
- • Established operating history since 1981(p.253)
- • Reduced debt burden with improved debt-to-equity ratio(p.249)
- • Recently commenced operations at new property location(p.259)
- • Strong EBITDA generation and operating efficiency(p.248)
Weaknesses
- • Past losses in recent financial history(p.27)
- • Negative cash flows from investing and financing activities(p.27)
- • High working capital requirements despite negative working capital position(p.28)
- • Significant borrowings repayable on demand from promoters(p.38)
- • Substantial contingent liabilities from co-borrowing arrangements(p.32)
- • Unable to locate historical corporate records(p.33)
- • Discrepancies in corporate filings with Registrar of Companies(p.33)
- • Concentration of control with promoter group post-IPO(p.44)
- • Limited board experience with listed companies(p.44)
- • Registered office leased to third party limiting control(p.35)
- • High dependence on large corporate key accounts(p.48)
- • Growth execution risks and dependence on management estimates(p.46)
- • Employee benefit cost pressures impacting profitability(p.46)
- • Loss of historical corporate records creating compliance risk(p.72)
- • Limited working capital management flexibility(p.97)
- • High concentration of revenue from single property (35.35% from SOTM lease)(p.150)
- • Dependency on Mahindra Holidays lease for significant revenue(p.149)
- • Multiple properties held on leasehold basis with renewal risks(p.157)
- • Low occupancy rates at newer property (29.43% at SITF)(p.151)
- • Shared corporate office premises creating operational risk(p.144)
- • Dependence on single property revenue(p.217)
- • Recent management transitions and restructuring(p.182)
- • History of losses and negative equity in prior years(p.215)
- • High employee attrition rate among KMP(p.190)
- • Negative working capital position(p.244)
- • High dependence on related party financing(p.251)
- • Significant contingent liability from group company borrowings(p.252)
- • Heavy dependence on property rental income from single location(p.259)
- • Depreciation of assets creating pressure on profitability(p.260)
Opportunities
- • Expansion of existing resort properties(p.21)
- • Growing Indian hospitality market projected through FY27(p.21)
- • Brand expansion to new geographies(p.39)
- • Development of villa properties in Goa(p.36)
- • Working capital funding for growth(p.21)
- • Expansion of existing resort properties to increase capacity(p.89)
- • Diversification of revenue streams and complementary offerings(p.101)
- • Listing benefits to enhance corporate image and credibility(p.87)
- • Growing demand for unique resort experiences in natural settings(p.89)
- • Strong India tourism growth at 7.8% annual growth projected over next decade(p.124)
- • Capacity additions expected at 4-year high with demand-supply mismatch favoring occupancy(p.131)
- • Planned capacity expansion at existing properties (20 rooms at SBTL, 26 rooms at SITF)(p.155)
- • Growing domestic tourism, especially spiritual tourism in tier-2 and tier-3 destinations(p.130)
- • Emerging niche segments including wellness, adventure, and eco-tourism(p.142)
- • Expansion of resort portfolio(p.176)
- • Growth in hospitality sector through strategic partnerships(p.171)
- • Recognition and awards in hospitality industry(p.170)
- • Experience in hospitality and real estate development(p.175)
- • Growth in domestic leisure travel and tourism market(p.254)
- • Expansion of resort portfolio to new destinations(p.268)
- • Rising demand for experiential hospitality and events(p.253)
- • Monetization of underutilized properties through leasing(p.259)
- • Growth in MICE (meetings, incentives, conferences and events) segment(p.254)
Threats
- • Seasonal and cyclical fluctuations in hospitality demand(p.33)
- • Regulatory restrictions due to proximity to Pench National Park(p.29)
- • Dependence on online travel aggregators with rising commission pressure(p.30)
- • Lease renewal risks for critical properties(p.30)
- • Economic sensitivity and inflation affecting fixed costs(p.42)
- • Geographically concentrated operations exposure(p.39)
- • Supply chain disruptions affecting food and beverage operations(p.43)
- • Labor cost inflation and wage pressures(p.41)
- • Property records inaccuracies in India affecting title security(p.37)
- • Real estate asset liquidity and market uncertainties(p.39)
- • Competition from established players with local expertise(p.39)
- • Government regulatory changes in hospitality sector(p.20)
- • Decline in business travel demand due to teleconference technology adoption(p.48)
- • Intense competition in hospitality market with many new entrants(p.48)
- • Macroeconomic downturn risks affecting demand(p.49)
- • Dependence on basic infrastructure supply at resort locations(p.48)
- • Risk of contagious disease outbreaks disrupting operations(p.49)
- • Intense competition from multinational and regional hotel chains(p.160)
- • Geographic concentration in Tier-2 destinations exposed to regional economic slowdowns(p.144)
- • Proximity to Pench National Park creates operational and wildlife-related constraints(p.148)
- • Global economic slowdown affecting international travel demand(p.116)
- • Dependence on online travel agents for significant revenue (10.93% in FY24)(p.150)
- • Regulatory compliance requirements for environmental and labor laws(p.166)
- • Regulatory changes in labor codes affecting operations(p.168)
- • Seasonal and economic cyclicality of hospitality industry(p.217)
- • High debt obligations and guarantees(p.196)
- • Seasonal and cyclical nature of hospitality business affecting revenues(p.254)
- • Intense competition from organized and unorganized hospitality players(p.254)
- • Vulnerability to macroeconomic downturns affecting travel demand(p.254)
- • Rising operating costs and inflation pressure on margins(p.268)
- • External shocks reducing travel patterns and demand(p.254)
- • Extensive regulatory requirements and compliance burden(p.254)
- • Reliance on renewing licenses and registrations(p.276)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Rahul Maganlal Timbadia | Promoter | 78.85% | 59.54% |
| Kartik Maganlal Timbadia | Promoter | 2.63% | 1.99% |
| Karna Kartik Timbadia | Promoter | 2.63% | 1.99% |
| Rahul Maganlal Timbadia | Promoter | 78.85% | 58.07% |
| Kartik Maganlal Timbadia | Promoter | 2.63% | 1.93% |
| Karna Kartik Timbadia | Promoter | 2.63% | 1.93% |
| Rahul Maganlal Timbadia | Promoter | — | — |
| Kartik Maganlal Timbadia | Promoter | — | — |
| Karna Kartik Timbadia | Promoter | — | — |
| Rahul Maganlal Timbadia | Promoter | 78.85% | 58.07% |
| Kartik Maganlal Timbadia | Promoter | 2.63% | 1.93% |
| Karna Kartik Timbadia | Promoter | 2.63% | 1.93% |
| Rahul Maganlal Timbadia | Promoter | — | — |
| Kartik Maganlal Timbadia | Promoter | — | — |
| Karna Kartik Timbadia | Promoter | — | — |
Leadership
Rahul Maganlal Timbadia · Chairman and Non-Executive Director
Karna Kartik Timbadia · Managing Director
Usha Manish Ghelani · Chief Financial Officer
Harsha Darshan Mandora · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Saj Hotels IPO FAQs
What is the lot size of Saj Hotels IPO?
The minimum lot size of Saj Hotels IPO is 2,000 shares. One lot costs ₹1,30,000 at the cut-off price.
When does Saj Hotels IPO open and close?
Saj Hotels IPO opened for subscription on 27 Sep 2024 and closed on 01 Oct 2024.
What is the listing date of Saj Hotels IPO?
Saj Hotels IPO listed on 07 Oct 2024.