Upcoming IPO Alert! Waterways Leisure Tourism Files Rs 727 Crore IPO to Expand Cordelia Cruises Fleet

Mumbai-based Waterways Leisure Tourism Limited, which is currently the only domestic ocean cruise operator in India as of December 31, 2024, according to the CRISIL Report, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise Rs 727 crore through an Initial Public Offering (IPO).

Details of Cordelia Cruise operator Waterways Leisure Tourism IPO

"The IPO comprises an entirely fresh issue of equity shares worth Rs 727 crore, with no component of offer-for-sale shares. Each equity share carries a face value of Rs 10. The issue will be conducted through the book-building process, with a minimum of 75% of the issue reserved for qualified institutional buyers," the company stated.

Non-institutional investors and retail individual investors will be allocated up to 15% and 10% of the issue respectively, ensuring a broad participation across different investor categories.

The proceeds from the fresh issue will be primarily utilized towards making payments related to deposits, advance lease rentals, and monthly lease payments to its step-down subsidiary, Baycruise Shipping and Leasing (IFSC) Private Limited ("Baycruise IFSC"). Specifically, approximately Rs 552.53 crore of the funds will be directed towards these payments. The remainder of the funds will be used for general corporate purposes, providing the company with the financial flexibility to support its ongoing operations and strategic growth initiatives.

Waterways Leisure Tourism: Current Operations and Offerings

Waterways Leisure Tourism currently operates a single cruise vessel named 'MV Empress', marketed under the brand name 'Cordelia Cruises'. Since its launch, this vessel has welcomed more than 5,49,051 guests and has covered over 2,25,079.53 nautical miles along the Indian coastline and nearby islands, up to December 31, 2024.

The ship offers a diverse range of cabin options totaling 796 cabins. These include one chairman's suite, five suites, 63 mini suites, 416 ocean-view staterooms, and 311 interior staterooms. Pricing for cabins varies widely, with interior rooms starting at Rs 25,230 per night and the chairman suite costing up to Rs 1,15,536 per night, subject to dynamic pricing and occupancy factors.

In order to capitalize on market opportunities and demand growth, the company plans to introduce two additional cruise vessels named 'Norwegian Sky' and 'Norwegian Sun'. These new ships will significantly expand passenger capacity, with the Norwegian Sky accommodating up to 2,004 guests and the Norwegian Sun having a capacity for 1,936 guests. This expansion is expected to enhance the company's ability to serve a wider clientele and offer a more extensive range of itineraries.

Market Leadership in Indian Cruise Industry

Waterways Leisure Tourism commands a dominant position in the Indian cruise market. According to the CRISIL Report, the company accounted for approximately 65% of the cruise market in India by value in Fiscal 2024. This leadership position underscores its established brand, operational expertise, and the appeal of its cruise offerings within the domestic market.

Waterways Leisure Tourism Cordelia Cruise Routes and Destinations

The company's cruise itineraries primarily cover key domestic destinations along the Indian coastline such as Mumbai (Maharashtra), Goa, Kochi (Kerala), Chennai (Tamil Nadu), Lakshadweep, Visakhapatnam (Andhra Pradesh), and Puducherry. In addition to domestic routes, Waterways Leisure Tourism has also ventured into international waters, offering cruises to destinations in Sri Lanka, including Hambantota, Trincomalee, and Jaffna. Furthermore, the company has started selling tickets for new international itineraries covering popular locations such as Phuket in Thailand, Singapore, Kuala Lumpur, and Langkawi in Malaysia.

Looking ahead, Waterways Leisure Tourism intends to introduce new cruise itineraries and destinations tailored to various traveler segments, including families, couples, and corporate groups. The company is focused on enhancing its service offerings by upgrading dining options to include specialty restaurants and local cuisines, renovating cabins with modern amenities and private balconies, and broadening entertainment options with new live performances and international acts. These initiatives are designed to elevate the overall cruise experience and attract a wider range of customers.

Waterways Leisure Tourism Financial Performance

Waterways Leisure Tourism reported revenue from operations of Rs 442.11 crore in Fiscal 2024. For the nine months ended December 31, 2024, the company generated Rs 409.45 crore in revenue from operations and posted a profit after tax of Rs 139.25 crore, reflecting strong operational performance and profitability.

IPO Listing Plans

The company has appointed Centrum Capital Limited, Intensive Fiscal Services Private Limited, and Motilal Oswal Investment Advisors Limited as the book-running lead managers for the IPO. MUFG Intime India Private Limited will act as the registrar of the issue. Upon successful completion of the IPO, Waterways Leisure Tourism's equity shares are proposed to be listed on both the National Stock Exchange of India Limited (NSE) and BSE Limited, providing investors with access to one of India's leading cruise operators.