A day after a lacklustre stock market entry, Waterways Leisure Tourism Limited staged a sharp rebound. On Thursday the stock climbed nearly 10% to lock in the upper circuit, having listed a day earlier at a 16% discount to its IPO price. The Cordelia Cruises operator saw its shares rise about 9.99% on the BSE to an upper circuit level of Rs 734.05 per share on Thursday, July 2, taking its market capitalisation to Rs 5,314.12 crore.
How the Debut Played Out
Waterways Leisure Tourism opened at Rs 681 per share on the NSE on Wednesday, a discount of 15.72% to the issue price. On the BSE the stock listed at Rs 690 per share, a 14.6% discount. The company had fixed its IPO price band at Rs 769 to Rs 808 per share.
The IPO in Detail
Waterways Leisure Tourism floated a Rs 585-crore initial public offering with a price band of Rs 769 to Rs 808 per share. The issue was entirely a fresh issue of 0.72 crore equity shares, with no offer-for-sale component. That meant the money raised flowed to the company itself rather than to existing shareholders cashing out their stakes.
The IPO was open for bidding from June 23 to June 25 and drew overall subscription of about 1.46 times. Retail investors led the demand, subscribing their portion 4.19 times. The non-institutional investor category was subscribed 1.17 times, while the qualified institutional buyer portion fell short of full subscription at 69%.
Ahead of the IPO, the company had raised around Rs 263.25 crore from anchor investors. According to the company, the net proceeds are earmarked largely to address lease-related obligations of its step-down subsidiary, Baycruise Shipping and Leasing (IFSC) Private Limited.
The Cordelia Cruises Business
Waterways Leisure Tourism runs Cordelia Cruises, one of India's most recognisable domestic ocean cruise brands. Its business straddles travel, entertainment, hospitality and discretionary spending. For market watchers that makes the listing stand out beyond the routine IPO cycle, since it offers exposure to an emerging leisure category in India.
The company operates MV Empress, its flagship cruise vessel, which can carry more than 2,000 passengers. Cordelia Cruises sails to domestic destinations such as Mumbai, Goa, Kochi, Chennai, Lakshadweep, Visakhapatnam and Puducherry. It also runs select international routes covering Sri Lanka, Thailand, Singapore and Malaysia.
