Saj Hotels shares list at 15% discount over IPO price on NSE SME

Saj Hotels operates in the hospitality sector, offering resort accommodations, villa rentals, and restaurant and bar services.

Shares of Saj Hotels were off to a dismal start on the bourses on its stock market debut on October 7 after listing at Rs 55, a discount of 15 percent over the issue price of Rs 65 per share on the NSE SME platform.

The company's shares were trading without a premium in the grey market. The grey market is an unofficial ecosystem where shares start trading much before the offer opens for subscription and continue to trade till the listing day.

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With an issue size of Rs 27.63 crore, Saj Hotels IPO is a fresh issue of 425 lakh shares. Given the recent subscription figures of SME IPOs, Saj's public offer received a muted investor response after the issue was subscribed just 5 times. Retail investors picked 8.6 times the portion reserved for them while non-institutional investors lapped up 2 times the allotted quota. Qualified institutional buyers didn't participate in the offer.

Incorporated in 1981, Saj Hotels operates in the hospitality sector, offering resort accommodations, villa rentals, and restaurant and bar services. The company owns or leases three resorts, managing two and leasing one to others. These properties also serve as venues for events such as conferences and weddings. Saj Hotels has a 50 percent investment in My Own Rooms Dot In Private Limited, enhancing its portfolio.

The funds raised will be used for expanding existing resorts, meeting working capital needs, and covering general corporate expenses.

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