Waterways Leisure Tourism, India's leading domestic ocean cruise operator, has launched its IPO today, aiming to raise Rs 585 crore through a fresh issue. The IPO, with a price band of Rs 769-808 per share, will be listed on the BSE and NSE on July 1. The proceeds are earmarked for lease-related expenses for its subsidiary, Baycruise Shipping and Leasing (IFSC), and general corporate purposes.
The company, which operates the Cordelia Cruises brand, currently commands nearly 79% of India's domestic ocean cruise market by value as of FY25. It plans to expand its fleet with the induction of Norwegian Sky in FY27 and Norwegian Sun in FY28. Waterways Leisure Tourism has served over 7.3 lakh passengers since its inception, offering itineraries across major Indian coastal cities and select international routes.
For FY26, Waterways Leisure Tourism reported a revenue of Rs 579.7 crore and a net profit of Rs 52.1 crore. The company's net worth increased to Rs 80.2 crore from Rs 32.8 crore the previous year. Despite its market dominance, brokerage Swastika Investmart has given the IPO a "Neutral" rating, citing risks such as reliance on a single vessel and the capital-intensive nature of the business.
JM Financial, in its IPO note, highlighted the company's strategic position to capitalize on the growth of India's cruise tourism industry, supported by its asset-light fleet expansion strategy. However, with the grey market premium at just 2%, immediate listing gains appear limited, prompting investors to consider a long-term perspective.
The IPO's timing aligns with the government's Cruise Bharat Mission, which aims to boost cruise tourism in India. This initiative, coupled with rising demand for experiential travel, positions Waterways Leisure Tourism for potential growth in the coming years.
Background
The IPO's timing aligns with the government's Cruise Bharat Mission, which aims to boost cruise tourism in India. This initiative, coupled with rising demand for experiential travel, positions Waterways Leisure Tourism for potential growth in the coming years.
Investors should monitor subscription trends over the next few days to gauge market interest. While the company's leadership and expansion plans are promising, those seeking quick returns may need to reassess their strategies.
