Waterways Leisure Tourism's initial public offering (IPO) is set to debut today, with grey market trends indicating a potential discounted listing. The IPO's grey market premium (GMP) stands at -Rs 51, suggesting a 6.31% discount to the upper price band of Rs 808 per share, pointing to an estimated listing price of Rs 757.
The Rs 585 crore IPO was subscribed 1.63 times overall, with retail investors showing the most interest, subscribing 4.19 times against the 7.60 lakh shares reserved for them. The Non-Institutional Investors (NIIs) portion saw a subscription of 1.18 times, while the Qualified Institutional Buyers (QIBs) category was subscribed 1.01 times. The IPO was a fresh issue with no Offer-for-Sale (OFS) component, and the price band was set between Rs 769 and Rs 808 per share, with a minimum bid size of 18 shares.
Proceeds from the IPO are earmarked primarily for lease-related obligations, including security deposits, advance rentals, and recurring lease payments for its subsidiary, Baycruise Shipping and Leasing (IFSC). This subsidiary is crucial for the company's fleet expansion strategy, focusing on acquiring additional cruise vessels. Remaining funds will support general corporate purposes.
Waterways Leisure Tourism, India's largest domestic ocean cruise operator, owns the Cordelia Cruises brand. Its flagship vessel, MV Empress, has a capacity of over 2,000 passengers and operates across key domestic destinations such as Mumbai, Goa, and Chennai, as well as select international routes to Sri Lanka and Southeast Asia. The company held a 79% market share by value in India's domestic ocean cruise market in FY25 and has served over 7.3 lakh passengers since its inception.
Financially, the company reported a revenue of Rs 579.7 crore and a net profit of Rs 52.1 crore for FY26. Its net worth increased significantly to Rs 80.2 crore from Rs 32.8 crore in the previous year, indicating a strong financial position ahead of its market debut.
Background
The IPO market in India has been witnessing varied investor sentiment, with some recent listings performing below expectations. Waterways Leisure Tourism's IPO performance will be closely watched as it reflects investor confidence in the leisure and tourism sector, particularly in the context of post-pandemic recovery.
Waterways Leisure Tourism plans to expand its fleet by inducting Norwegian Sky in FY27 and Norwegian Sun in FY28 under long-term lease arrangements. This move aims to bolster its presence in the premium cruise tourism segment.
