Saj Hotels had a disappointing start in the stock market on 7 October, debuting at Rs 55 per share, a 15 per cent discount from its issue price of Rs 65 on the National Stock Exchange (NSE) Small and Medium Enterprise (SME) platform. The lack of enthusiasm extended to the grey market, where the company's shares were trading without a premium ahead of the listing.
The company's Rs 27.63 crore IPO involved a fresh issue of 425 lakh shares. Despite growing interest in SME IPOs, Saj Hotels’ public offer received a lukewarm response, with overall subscriptions reaching just 5 times. Retail investors showed the most interest, subscribing 8.6 times their portion, while non-institutional investors subscribed twice the allotted quota. However, qualified institutional buyers (QIBs) did not participate in the offer.
Founded in 1981, Saj Hotels operates in the hospitality sector, providing resort accommodations, villa rentals, and food and beverage services. The company owns or leases three resorts, which also host events such as weddings and conferences. Saj Hotels holds a 50 per cent stake in My Own Rooms Dot In Private Limited, broadening its service offerings.
The funds raised from the IPO will be used to expand the company's existing resorts, meet working capital requirements, and cover general corporate expenses.