Sayaji Hotels (SHL) was incorporated in Apr.'82 as a private limited company as Monali Land & Housing Company Pvt Ltd which was converted into a public limited company in Apr.'87 and commenced its operations in Jan.'90. It was promoted by Razak D Dhanani. Other group companies include M P Agra Fertilisers and Welterman International. The company came out with a rights issue in Jan.'95 at a premium of Rs 20 aggregating Rs 3.27 cr to part-finance the setting up of a three-star hotel in Indore, Madhya Pradesh, (total cost : Rs 12.35 cr). SHL is in the hotel industry and has hotels at various locations such as Vadodara and Gandhidham. The company hotel projects are at business centres like Rajkot, Jamnagar, Bhavnagar, Bhopal and other places. Apart from the hotel industry, it has also decided to diversify into the financial and power sectors, The expansion of it's Hotel at Gandhidham with 18 rooms stands completed during 1998-99 and has upgradation and refurbishment at Baroda is completed. The Indore Hotel undertaking, by addition of 88 rooms was transferred to a wholly owned subsidiary company and will proceed further after obtaining approval from the shareholders. The company had privately placed 5,00,000 equity shares of Rs.10/- each on private placement/preferential basis during the year under review.