The initial public offering (IPO) of Mumbai-based Waterways Leisure Tourism, known for its Cordelia Cruises, commenced bidding on Tuesday, June 23. The offering aims to raise Rs 585 crore, with shares available in a price band of Rs 769-808 apiece. Investors can apply for a minimum of 18 equity shares, and the subscription window closes on Thursday, June 25.
Waterways Leisure Tourism is a prominent domestic ocean cruise operator in India, focusing on luxury experiences that highlight Indian culture, hospitality, entertainment, and cuisine. The company held an estimated 79 percent market share by value in India’s domestic ocean cruise industry during Fiscal 2025. It operates the MV Empress, a cruise vessel sailing to various Indian destinations like Mumbai, Goa, and Kochi, as well as international locations including Sri Lanka and Singapore. By March 31, 2026, over 730,000 guests had sailed on its cruises.
IPO Details and Use of Funds
The IPO is an entirely fresh issue of 7,240,099 equity shares. Proceeds from the offering will primarily be utilized for deposit/advanced lease rental and monthly lease payments to its step-down subsidiary, Baycruise Shipping and Leasing (IFSC), alongside general corporate purposes. The company plans to expand its fleet with the addition of the ‘Norwegian Sky’ by Fiscal 2027 and the ‘Norwegian Sun’ by FY28 to meet growing demand.
Ahead of the public issue, Waterways Leisure Tourism successfully raised Rs 263.25 crore from anchor investors, allocating 3,258,045 equity shares at Rs 808 each. Notable anchor investors included Cullinan Opportunities Fund VCC, Zeal Global Opportunities Fund, and Baroda BNP Paribas Mutual Funds.
Financial Performance and Valuation
For the period ending December 31, 2025, Waterways Leisure Tourism reported a net profit of Rs 52.14 crore on a revenue of Rs 586.99 crore. In the financial year ended March 31, 2025, the company recorded a net profit of Rs 168.19 crore with a revenue of Rs 597.68 crore. At the current valuations, the company commands a market capitalization of Rs 5,850 crore.
The grey market premium (GMP) for Cordelia Cruise shares was reportedly Rs 10-12 apiece, suggesting potentially flat listing gains for investors.
Brokerage Views on the IPO
- DR Choksey Finserv: 'Subscribe'
The brokerage firm noted India's low cruise penetration as a significant long-term demand driver. While expecting EBITDA margins to compress initially in FY27 due to fixed charter obligations, they foresee recovery towards FY29 as fleet utilization stabilizes. They view Cordelia as a 3-5 year compounding opportunity, contingent on disciplined fleet execution. - SBI Securities: 'Subscribe for long-term'
SBI Securities highlighted WLT as a leading cruise operator and a strong proxy for India's growing ocean and coastal cruise industry, which is projected to grow at a 20-25 percent CAGR. They anticipate improved profit growth and market leadership, despite the current valuation being high at 112.2 times P/E based on FY26 post-issue earnings. - Swastika Investmart: 'Neutral'
While acknowledging Cordelia Cruises' strong market position and healthy occupancy levels, Swastika Investmart found the IPO aggressively priced at around 101 times P/E. They pointed to declining EBITDA margins, exposure to fuel costs, and operational disruptions as risks, recommending a 'neutral' rating suitable for long-term investors but not attractive for listing gains. - Ventura Securities: 'Subscribe'
Ventura Securities emphasized the company's role in India’s expanding overnight ocean and coastal cruise industry, supported by government initiatives. They noted the IPO proceeds would facilitate fleet expansion. However, they also highlighted significant risks, including negative cash flows from operating activities and contingent liabilities, with 67 percent of passengers originating from Mumbai, making the business susceptible to localized disruptions. - BP Equities: 'Avoid'
BP Equities deemed the issue expensive, valuing it at a P/E multiple of 100.7 times based on FY26 diluted earnings. They recommended an 'avoid' rating at current valuations, suggesting monitoring the company post-listing for potential investment opportunities as its expansion plans materialize into earnings growth.
Waterways Leisure Tourism has reserved 75 percent of the IPO for qualified institutional bidders (QIBs), 15 percent for non-institutional investors, and 10 percent for retail investors. Centrum Broking is the sole book-running lead manager, with MUFG Intime India serving as the registrar. Shares of the company are expected to be listed on both BSE and NSE, with July 1 tentatively set as the listing date.