Waterways Leisure Tourism IPO Now Open for Subscription: Is It the Right Investment for You?

The IPO of Waterways Leisure Tourism, the operator of the Cordelia Cruises brand, has officially opened for subscription today, June 23, and will remain available until June 25. The IPO represents a fresh issue worth Rs 585 crore, without an offer-for-sale component, and offers shares in a price band of Rs 769-808 per share. Investors are required to bid for a minimum of 18 shares, with the possibility of bidding in multiples thereafter. The shares are set to be listed on both the BSE and NSE on July 1, 2023.

Ahead of the subscription opening, the grey market premium (GMP) for Waterways Leisure Tourism has been noted at approximately 2%, reflecting muted expectations for the stock’s listing performance. Brokerages, including Swastika Investmart, have assigned a “Neutral” rating to the IPO, emphasizing the company’s dominant position in India’s emerging cruise tourism market, but raising concerns about the risks associated with its capital-intensive business model and reliance on a single vessel. Additionally, JM Financial has expressed optimism about the company’s potential to capitalize on growth within the cruise industry, supported by the government’s Cruise Bharat Mission.

For Indian investors, the IPO presents a mixed bag of opportunities and challenges. Those with a long-term perspective may find value in the company’s leadership position and its ambitious expansion plans, particularly as it aims to diversify its fleet with new vessels in the coming years. However, the subdued GMP signals that investors primarily interested in short-term gains should closely monitor subscription trends over the next few days before making a decision. Overall, the IPO could be seen as a crucial step in promoting cruise tourism in India, but investors should be mindful of the inherent risks involved.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova IPO team.)