Waterways Leisure Tourism IPO Day 3: 69% Subscribed, Flat GMP Signals—Is It Worth Your Investment?

The initial public offering (IPO) of Waterways Leisure Tourism, operator of the Cordelia Cruises brand, has seen a subdued response from investors, ultimately achieving only 69% subscription on its final day. The issue, which comprises entirely fresh shares and excludes an offer-for-sale component, had a price band set between Rs 769 and Rs 808 per share. Although the retail investor segment was robustly oversubscribed by three times, the interest from institutional investors lagged significantly, with only 51% subscription noted in the non-institutional segment and no bids from qualified institutional buyers as of the last reporting.

The grey market sentiment has mirrored the lackluster overall subscription, as the grey market premium (GMP) is hovering around 1%, which, while indicative of a slight expected rise, reflects broader caution among investors. The estimated listing price based on the GMP stands at approximately Rs 813 per share, suggesting only minimal gains upon listing. Investors should exercise caution as the grey market can be volatile and is largely unregulated, making it a less reliable indicator of future performance.

For Indian investors, this IPO presents a mixed outlook. Waterways Leisure Tourism holds a dominant position in a growing cruise tourism market, accounting for nearly 79% of India’s domestic ocean cruise share. While the brokerage firms recognize the potential long-term benefits stemming from rising demand for experiential travel and the government’s Cruise Bharat Mission, they also caution about significant risks tied to fleet expansion and dependence on a singular vessel. Investors with a long-term perspective may find merit in the company’s strategic expansion plans, whereas those seeking quick returns might prefer to wait for stronger subscription trends before committing funds.

Source: The Economic Times

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