MAC Hotels Limited IPO

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(i) Mac Hotels Private Limited at Panaji, Goa was Incorporate on December 20, 1990. The Company is primarily engaged in the business of owning, operating and managing hotels, restaurants, and resorts in Goa since last 25 years. The company has been incorporated with the main object to carry on the business of hotels, restaurant, café, caravan site, apartment house-keeper etc and related services. Our Hotels and Resorts are tourist destinations for domestic as well as international tourists and are one of the frequented hotels in Goa.

(ii) The company has entered into Management Services Agreement (OYO Agreement) with Alcott Town Planners Private Limited on September 09, 2017 for providing the services such as – Managing the day to day operations of the property, manage maintenance and supervision of the property, providing food and beverages services.

MAC Hotels Limited IPO Stock Quote & Charts

66.00

+5.43%

  • Open: 65.90
  • High - Low: 66.00 - 65.90
  • Previous Close: 62.60
  • Total Traded Volume: 12000
  • Updated On: 12-Dec-2018

Objects of the MAC Hotels Limited IPO:

Objective of MAC Hotels Limited IPO are: The object of the Offer is to achieve the benefits of listing the Equity Shares on the Designated Stock Exchange and for the sale of 8,10,000 Equity Shares by the Selling Shareholder (“Hotel Miramar Comfort Private Limited” or “HMCPL”). Further, The Company expects that the listing of the Equity Shares will enhance our visibility and brand image among our existing and potential customers and provide liquidity to the existing shareholders. Our Company will not receive any proceeds of the Offer and all the proceeds will go to the Selling Shareholder.

MAC Hotels Limited IPO Details:

Open Date: Sep 19 2018
Close Date: Sep 24 2018
Total Shares: 810,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 1.94 Cr.
Lot Size: 6000 Shares
Issue Price: ₹ 24 Per Equity Share
Listing At: BSE SME
Listing Date: Oct 04 2018

Promoters And Management:

Promoters ofMAC Hotels Limited Company are: Edgar Maximiano Do Rosario Cotta, aged 49 years, is the Promoter and Managing Director of our Company. He is one of the subscribers of Memorandum of Association of our Company. He has been designated as Managing Director on September 01, 2017. He holds a Degree of Master of Arts from Karnatak Unversity. He has approx. 25 years of experience in Hotel Industry. He has been instrumental in formulating the business strategies of our Company. Edwin E R Cotta, aged 49 years, is the Promoter, Chairman and Whole Time Director of our Company. He has been the Director of the Company since incorporation and is also one of the subscribers of Memorandum of Association of our Company. He has been designated as Chairman and Whole Time Director on September 01, 2017. He has approx. three decades of experience in the field in which company operates. He is entrusted with the responsibility of looking after the overall management and operates the Company

Financials of MAC Hotels Limited IPO:

Particulars For the year/period ended (in Rs Lacs)
31-Dec-2017 31-Mar-17 31-Mar-16 31-Mar-15 31-Mar-14
Total Assets 575.15 563.78 301.09 259.04 265.69
Total Revenue 239.77 310.13 188.32 193.10 141.76
Profit After Tax 8.00 13.05 8.43 8.76 8.83

Recommendation on MAC Hotels Limited IPO:

Review and Recommendation of MAC Hotels Limited IPO from IZ team is: 2/10 [The SME IPO with an OFS is next to crime. The Issue is priced at very such high valuations on stagnant growth in the last 5 year is hard to digest.]

Lead Manager of MAC Hotels Limited IPO:

  1. Gretex Corporate Services Private Limited

Registrar of MAC Hotels Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

MAC Hotels Limited First Floor, Beach Plaza (Annexee), Nomxin, Caranzalem, Ilhas, Goa, Panaji - 403001, Goa, India Phone No. 0832-2464299; E-mail: investor@machotels.net Website: www.machotels.net

Bid Details of MAC Hotels Limited IPO as on
24 Sep 2018 | 11:58:03 PM

Category No.of shares offered No. of shares bid
384,000 690,000
384,000 246,000
42,000 42,000
810,000 978,000
QIBs No
QIBs+HNIs Subscription 1.80X
Retail Subscription 0.64X
Total Subscription 1.22X

Discussion on MAC Hotels Limited IPO:

    Hotel Miramar not long ago was alloted shares 2648000 at 10 rs and is now exit 810000 shares at 24 rs
    which emans they have got all the money invested and now the shares left are free of cost

    just an exit route for ofs with no money going to company. This should have never been allowed in SME to get exit route for promoters.

    The SME portal was established in the year 2012 to help small companies to raise credit from the market for their expansion because getting a credit from banks was difficult. However, no one would have imagined that within 5-6 years an SME platform will be used as an exit path for the existing owners in the company. The day SME IPOs started coming up with an OFS the whole purpose of SME platform is defeated.

    Reasons to Avoid Mac Hotels

    1. No moat in the business. Simply running a resort in Goa which is present thousands in numbers in Goa. The competition is quite immense.
    2.Stagnant growth in the Profit in the last 5 years.
    3. It is pure OFS. Nothing will go to the company.
    4. The Issue is offered at very high Valuations.

    EPS Story based on FY18

    (i) PAT= 10.66 lakhs( Annualized)
    (ii) Outstanding Shares= 30lakhs
    (iii) EPS= 0.35
    (iv) P/E= 68

    Conclusion: How on earth such companies even think of in their wildest of dreams to come with an OFS at such an exuberant valuation.

    (i) The Company has issued 26,48,000 @Rs.10 shares to Hotel Miramar Comfort Pvt Ltd on 31st March 2017 to purchase a property against equity shares. Now the Interesting part is the same company is offering to sell its shares in the OFS.

    (ii) The Board of Directors of Hotel Miramar Comfort Private Limited have, by a resolution passed at its meeting held on May 07, 2018 authorized to participate in the Offer for Sale by offering 8,10,000 Equity Shares.

    (iii) The Shares are offered at Rs.24. That means a profit of 1.13 Cr on investment of 81 lakhs for Miramar Comfort Private Limited.

    Mac Hotels Limited operates Resort Park Avenue near Calangute Beach, Goa since year 2013. It is spread over an area of 3225 Square metres. It consists of rooms, multi cuisine restaurant, coffee shop, swimming pool. The accommodation consists of 50 guest rooms ensuring comfort and luxury. This resort is centered around the swimming pool with balconies overlooking the pool. The rooms at this resort are comfortable and spacious appealing to family and couples. The resort has the restaurant and bar of its own. The bar provides refreshment. A great setting to return after exploring the colorful roadside markets.

    Offer for sale and that too for such small amount. This shows the credibility of promoter/company.
    Stay away on such high risky stock with no fundamentals

    MONITORING OF UTILIZATION OF FUNDS

    Since the Offer is an offer for sale and our Company will not receive any proceeds from the Offer, our
    Company is not required to appoint a monitoring agency for the Offer.

    Preferential issued done on 30th March 2017 for 26,48,000 @ Rs 10 and now from the same OFS to public 8,10,000 @ Rs 24