Waterways Leisure Tourism IPO Struggles for Traction on Day 1: Is It Time to Invest?
The initial public offering (IPO) of Waterways Leisure Tourism, the operator of the Cordelia Cruises brand, has officially opened for subscription. As of the early hours of Day 1, the overall subscription stood at a mere 7%, with 42.84 lakh shares on offer. The retail segment performed relatively better, achieving a 34% subscription rate, while institutional demand appeared weak, as no bids were recorded from Qualified Institutional Buyers (QIBs) and only 1% from Non-Institutional Investors (NIIs). The IPO features a price band of Rs 769–Rs 808 per share, with proceeds primarily allocated for lease obligations and corporate purposes. The shares are set to list on the BSE and NSE on July 1, following the closure of the issue on June 25.
Market sentiment in the grey market remains lukewarm, with the grey market premium (GMP) currently at approximately 2%. This indicates conservative expectations for the listing, suggesting a flat-to-muted performance ahead. The subdued trading activity reflects cautious investor interest, urging a watchful stance as key bidding days progress. Given that the IPO is entirely a fresh issue, the lack of strong institutional backing may raise concerns regarding long-term demand and investor confidence.
For Indian investors, Waterways Leisure Tourism presents a mixed opportunity. The company dominates the domestic cruise market, holding a significant 79% market share as of FY25. However, concerns surrounding its reliance on a single vessel and the capital-intensive nature of the business have been flagged. Analysts suggest that while investors with a long-term perspective may find merit in the company’s growth potential within India’s burgeoning cruise tourism sector, those seeking immediate gains may opt to assess subscription trends further before making investment decisions. Overall, a cautious yet strategic approach would be advisable in light of the IPO’s current performance indicators.
Source: The Economic Times
(Expert Note: This report was prepared by the Wealthova IPO team.)