As of the end of Day 2, the issue had received bids for 21.42 lakh shares against 41.84 lakh shares on offer, translating into an overall subscription of 51%.
Retail investors continued to lead demand, with their quota subscribed 2.34 times, while the non-institutional investor (NII) portion was booked 32%. The qualified institutional buyer (QIB) segment had not received bids at the time of reporting.
Waterways Leisure Tourism IPO: GMP today
According to market observers tracking unofficial trading activity, the shares were commanding a grey market premium (GMP) of ₹5. Based on the upper end of the price band, the GMP implies a potential listing gain of around 0.6%.
However, GMPs are unofficial indicators and can fluctuate sharply before listing.
The IPO, which opened for subscription on June 23, comprises a fresh issue of shares worth ₹585 crore and does not include any offer-for-sale component. Ahead of the launch, the company raised ₹263.25 crore from anchor investors.
The company has fixed the price band at ₹769-₹808 per share, with investors required to bid for a minimum of 18 shares.
Waterways Leisure Tourism IPO: Management outlines expansion roadmap
Speaking to CNBC-TV18, Waterways Leisure Tourism’s management outlined an aggressive expansion roadmap centred around fleet additions and premiumisation.
The company currently operates the MV Empress under the Cordelia Cruises brand but is preparing to induct Norwegian Sky and Norwegian Sun into its fleet. According to management, the new vessels will significantly expand capacity while improving the mix of premium cabins and suites.
“796 rooms go to 2,800 rooms, and the premium cabin mix is increasing by 1,000%,” Chief Financial Officer Nishikant Upadhyay told CNBC-TV18.
Management argued that investors are largely valuing the business based on its current fleet and are yet to fully factor in the earnings potential of the incoming ships. Both Norwegian Sky and Norwegian Sun have more than 1,000 cabins each, with a larger proportion of balcony cabins and suites that typically generate higher yields.
The company also said that benefits from the expansion are already beginning to flow through, as cruise vacations are often booked up to 18 months in advance and reservations for the new vessels have already commenced.
Management expects the larger fleet to enhance profitability as well. Chairman and CEO Jurgen Bailom said the business breaks even at roughly 60% occupancy, even at the lowest fare category.
Addressing concerns around profitability, Upadhyay said reported margins do not fully capture the company’s earnings potential due to accounting treatment related to lease expenses. On a normalised basis, he estimated EBITDA margins at 35-40%.
The company also sought to reassure investors on cash flow trends, stating that a significant portion of FY26 cash outflows relates to advance payments for vessel acquisitions and future lease obligations. Excluding these one-time payments, the business would have generated positive operating cash flows, management said.
On concerns around the age of the vessels, Bailom said cruise ships undergo continuous maintenance, upgrades and regulatory inspections, making chronological age a less relevant metric.
“The steel is 25 years old; inside of the ship everything is brand new,” he said.
While acknowledging risks from geopolitical events and health-related disruptions, management said the ability to redeploy ships across routes and operate throughout the year provides flexibility in managing demand fluctuations.
Waterways Leisure Tourism operates under the Cordelia Cruises brand and currently commands nearly 65% of India’s cruise market by value. As of December 2024, its vessel MV Empress had hosted more than 5.49 lakh guests and sailed over 2.25 lakh nautical miles.
For FY24, the company reported revenue of ₹442.11 crore. Revenue for the nine months ended December 2024 stood at ₹409.45 crore, while profit after tax came in at ₹139.25 crore.
The shares are proposed to be listed on the NSE and BSE, with Centrum Broking acting as the book-running lead manager and MUFG Intime India serving as the registrar.
