Waterways Leisure Tourism IPO: India’s Largest Cruise Operator Seeks to Expand Fleet
Waterways Leisure Tourism, India’s leading domestic ocean cruise operator, is set to launch its initial public offering (IPO) for subscription today, with a price band of Rs 769-808 per share. The company aims to raise Rs 585 crore through the issue, which is entirely a fresh issue with no offer-for-sale component.
India’s Largest Cruise Operator Seeks to Expand Fleet
Waterways Leisure Tourism, which owns the Cordelia Cruises brand, currently operates MV Empress, a cruise vessel with a capacity of over 2,000 passengers. The company plans to expand its fleet by inducting Norwegian Sky in FY27 and Norwegian Sun in FY28 under long-term lease arrangements.
According to its Red Herring Prospectus (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.
Key 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.
Market Impact and Details
- The company plans to utilise the proceeds primarily towards lease deposits, advance lease rentals, and monthly lease payments for its subsidiary, Baycruise Shipping and Leasing (IFSC), which is acquiring new cruise vessels.
- The shares are proposed to be listed on both the BSE and NSE on July 1.
- Brokerage Swastika Investmart has assigned a “Neutral” rating to the IPO, highlighting 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.
Key Takeaways
- Waterways Leisure Tourism is India’s leading domestic ocean cruise operator, accounting for nearly 79% of India’s domestic ocean cruise market by value in FY25.
- The company plans to expand its fleet by inducting Norwegian Sky in FY27 and Norwegian Sun in FY28 under long-term lease arrangements.
- The IPO is entirely a fresh issue worth Rs 585 crore, with no offer-for-sale component.
FAQs
What is the price band for the Waterways Leisure Tourism IPO?
The price band for the IPO is Rs 769-808 per share.
What are the key risks associated with the IPO?
The key risks associated with the IPO include the company’s dependence on a single cruise vessel, the capital-intensive nature of the business, and execution risks associated with fleet expansion.
What is the listing date for the Waterways Leisure Tourism IPO?
The shares are proposed to be listed on both the BSE and NSE on July 1.
Conclusion
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 over the next three days before taking a call. With the grey market premium remaining at just 2%, the issue is not indicating strong listing gains at present.
As the IPO opens for subscription today, investors are advised to carefully consider their investment decisions and consult with their financial advisors before making any investment decisions.
