In a weak start on Dalal Street, shares of Waterways Leisure Tourism listed at 16% discount to the IPO price on Wednesday. The stock opened at Rs 681 and Rs 690 on BSE and NSE, respectively, as compared to its issue price of Rs 757.
IPO Subscription
The Rs 585 crore initial public offering was subscribed 1.63 times overall against the 41.84 lakh shares on offer.
Retail investors emerged as the strongest participants, with their quota subscribed 4.19 times against the 7.60 lakh shares reserved for the segment. The Non-Institutional Investors (NIIs) portion was subscribed 1.18 times, while the Qualified Institutional Buyers (QIBs) category was subscribed 1.01 times.
The IPO was entirely a fresh issue, with no Offer-for-Sale (OFS) component. The company had fixed a price band of Rs 769-808 per share, with a minimum bid size of 18 shares.
Utilisation of IPO Proceeds
The company plans to use the proceeds primarily to meet lease-related obligations, including security deposits, advance rentals and recurring lease payments for its subsidiary, Baycruise Shipping and Leasing (IFSC).
The subsidiary is spearheading the company's fleet expansion strategy through the acquisition of additional cruise vessels. The remaining funds will be allocated towards general corporate purposes.
India's Leading Cruise Operator
Waterways Leisure Tourism is India's largest domestic ocean cruise operator and owns the popular Cordelia Cruises brand.
Its flagship vessel, MV Empress, has a passenger capacity of more than 2,000 and operates cruises across key domestic destinations, including Mumbai, Goa, Kochi, Chennai, Lakshadweep, Visakhapatnam and Puducherry. The company also offers select international sailings to Sri Lanka, Thailand, Singapore and Malaysia.
According to the company's Red Herring Prospectus (RHP), it commanded nearly 79% of India's domestic ocean cruise market by value in FY25. Since commencing operations, the company has served over 7.3 lakh passengers.
Looking ahead, Waterways Leisure Tourism plans to strengthen its fleet by inducting Norwegian Sky in FY27 and Norwegian Sun in FY28 under long-term lease arrangements, expanding its presence in the premium cruise tourism segment.
Financial Performance
For FY26, Waterways Leisure Tourism reported revenue from operations of Rs 579.7 crore and a net profit of Rs 52.1 crore. The company's net worth also strengthened significantly, rising to Rs 80.2 crore from Rs 32.8 crore in the previous financial year, reflecting an improving financial position ahead of its stock market debut.
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