Waterways Leisure Tourism’s IPO Day 2: Flat GMP Raises Questions—Is It Worth Investing?
The initial public offering (IPO) of Waterways Leisure Tourism, the operator behind the Cordelia Cruises brand, is currently underway, now entering its second day of bidding. The IPO has attracted muted investor enthusiasm, with an overall subscription rate of just 19% against the 41.84 lakh shares available. Notably, the retail investor segment saw stronger participation, nearing full subscription at 99%, while demand from institutional investors remained relatively weak. The company has priced the offerings between Rs 769 and Rs 808 per share, thereby raising Rs 585 crore entirely through a fresh issue, with no components available for sale.
Current grey market sentiment is also lackluster, with the grey market premium (GMP) sitting at about 1%, translating to an estimated listing price of Rs 814 per share. This muted sentiment suggests tepid market expectations for the stock’s debut on the BSE and NSE, anticipated on July 1. Investors should bear in mind that grey market trading is unregulated and fluctuates rapidly, making it a somewhat unreliable measure of actual listing performance. The company’s focus on addressing lease-related financial obligations and plans for fleet expansion may not have sufficiently allayed investor concerns as indicated by the low institutional interest.
For Indian investors, the Waterways Leisure Tourism IPO presents a cautious investment opportunity. Though the company claims a dominant position in the emerging Indian cruise market, with significant plans for fleet expansion, the risks associated with its capital-intensive operations warrant close scrutiny. Brokerages such as Swastika Investmart maintain a “Neutral” rating due to these risks, emphasizing the importance of understanding long-term growth potential versus immediate listing gains. As subscription metrics evolve over the bidding period, investors may wish to monitor these closely to inform their decisions.
Source: The Economic Times
(Expert Note: This report was prepared by the Wealthova IPO team.)