Waterways Leisure Tourism IPO Day 3: Issue subscribed 69%, GMP signals flat debut. Should you apply?

The initial public offering (IPO) of Waterways Leisure Tourism, the operator of the Cordelia Cruises brand, saw muted investor enthusiasm on Thursday, its third and final day of bidding and is still not fully subscribed. The issue was subscribed 69% overall against 41.84 lakh shares on offer, reflecting cautious participation. While the retail investor segment attracted stronger interest and was oversubscribed three times, demand from institutional investors remained weak.

Grey market sentiment has also been subdued, with the IPO’s grey market premium (GMP) hovering around 1%, indicating expectations of a largely flat listing.

The Rs 585 crore IPO is entirely a fresh issue, with no offer-for-sale (OFS) component. The company has fixed a price band of Rs 769–Rs 808 per share, and investors can bid in lots of 18 shares and in multiples thereof. The issue closes on June 25, and the shares are expected to list on the BSE and NSE on July 1.


The proceeds from the offering will primarily be used to meet lease-related obligations, including deposits, advance rentals, and recurring lease payments for its subsidiary, Baycruise Shipping and Leasing (IFSC). The subsidiary is focused on expanding its fleet through the acquisition of additional cruise vessels. The remaining funds will be used for general corporate purposes.

Waterways Leisure Tourism IPO GMP Today

The grey market premium (GMP) stands at Rs 5 per share, representing a premium of around 1% over the upper price band of Rs 808. Based on the current GMP, the estimated listing price is around Rs 813 per share.

Note: GMP is an unofficial market indicator and should not be considered a reliable predictor of listing performance. Grey market activity is unregulated and can change rapidly.

Waterways Leisure Tourism IPO Subscription Snapshot

On Day 3 at 11:30 am, the IPO received bids for 69% of the 41.84 lakh shares on offer.

Retail Individual Investors (RIIs): 3x subscribed against 7.60 lakh shares
Non-Institutional Investors (NIIs): 51% subscribed against 11.41 lakh shares
Qualified Institutional Buyers (QIBs): No bids received yet for 22.82 lakh shares

With subscription levels still modest and grey market signals pointing to limited listing gains, investors may want to carefully assess the company’s long-term growth prospects before making a decision.

India's largest cruise operator

Waterways Leisure Tourism is India's leading domestic ocean cruise operator and owns the Cordelia Cruises brand. The company currently operates MV Empress, a cruise vessel with a capacity of over 2,000 passengers, offering domestic itineraries covering Mumbai, Goa, Kochi, Chennai, Lakshadweep, Visakhapatnam and Puducherry, along with select international routes to Sri Lanka, Thailand, Singapore and Malaysia.

According to its RHP, the company accounted for nearly 79% of India's domestic ocean cruise market by value in FY25. It has served more than 7.3 lakh passengers since commencing operations and plans to expand its fleet by inducting Norwegian Sky in FY27 and Norwegian Sun in FY28 under long-term lease arrangements.

Financials

For FY26, the company reported revenue from operations of Rs 579.7 crore and net profit of Rs 52.1 crore. Net worth improved to Rs 80.2 crore from Rs 32.8 crore a year earlier.

Should you subscribe?

Brokerage Swastika Investmart has assigned a "Neutral" rating to the IPO. It said the company enjoys a dominant position in India's nascent cruise tourism industry and stands to benefit from rising demand for experiential travel and the government's Cruise Bharat Mission.

However, the brokerage also highlighted key risks, including the company's dependence on a single cruise vessel, the capital-intensive nature of the business and execution risks associated with fleet expansion.

JM Financial, in its IPO note, said the company is well placed to benefit from the expected growth in India's cruise tourism industry through its planned asset-light fleet expansion and increasing passenger capacity.

With the grey market premium remaining at just 2%, the issue is not indicating strong listing gains at present. Investors with a long-term view may consider the company's leadership position and expansion plans, while those looking primarily for listing gains may prefer to watch subscription trends before taking a call.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)