The initial public offering (IPO) of cruise operator Waterways Leisure Tourism has entered its last day of subscription. So far, investor response to the IPO has remained relatively weak. By 11 am on the third and final day of bidding, the issue had been subscribed 0.66 times.
Investors placed bids for 27,75,600 shares against a total offer size of 41,84,004 shares, highlighting limited demand across investor categories.
The Waterways Leisure Tourism IPO is structured as a book-built issue worth ₹585 crore. It consists entirely of a fresh issue of more than 72 lakh equity shares. The price band for the issue has been fixed between ₹769 and ₹808 per share.
The grey market premium (GMP) for the Waterways Leisure Tourism IPO was recorded at ₹5 on June 25, suggesting a likely listing price of around ₹813 per share. This reflects a very small premium of just 0.62% over the upper price band of ₹808, indicating subdued listing expectations.
Waterways Leisure Tourism operates in the niche travel and leisure segment and is known for offering ocean cruise experiences in India.
As of December 2024, Waterways Leisure Tourism was India’s only domestic ocean cruise operator offering luxury Indian-themed experiences aboard the MV Empress.
To achieve operational efficiency, the company has outsourced key cruise operations to third-party service providers such as housekeeping, crew and entertainment services.
Despite its positioning in the experiential tourism segment, the IPO has not seen strong investor enthusiasm during the bidding period, as various concerns about the company’s business have cautioned investors. The company is dependent on a single cruise vessel, MV Empress, and any disruption to the vessel could significantly affect the business of the firm.
On the financial side, the company’s revenue declined from ₹591 crore in FY25 to ₹580 crore in FY26.
The decline in profit was steeper. The bottom line shrunk 70% from ₹168 crore to ₹52 crore during the same period. The profit margin also declined from over 28% to just 9% during the corresponding period.
According to some experts, the retail portion of the issue is just 10% due to its volatile profitability. Moreover, even on the last day of subscription, qualified institutional buyers have remained away from the public issue.
The low subscription level and minimal grey market premium suggest cautious market sentiment toward the offering. Market participants often track GMP as an indicator of potential listing gains or discounts. In this case, the slight premium indicates expectations of a flat listing rather than significant upside.
Overall, the IPO’s performance reflects a wait-and-watch approach from investors, even as the company aims to expand its presence in the growing cruise and leisure tourism industry in India.
