Waterways Leisure Tourism files DRHP with Sebi to launch Rs 727 Crore IPO

Mumbai-based Waterways Leisure Tourism, India's only domestic ocean cruise operator, has filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to launch an Initial Public Offering (IPO) worth Rs 727 crore. This IPO will be a fresh issue of shares, devoid of any offer-for-sale component. The company plans to utilise Rs 552.53 crore from the proceeds primarily for leasing purposes with its subsidiary, ‘Baycruise IFSC’, and other general corporate strategies.

The IPO, with a face value of Rs 10 per share, will follow a book-building process. The allocation is set at a minimum of 75% for qualified institutional buyers, while 15% is reserved for non-institutional investors and 10% for retail investors. Centrum Capital Limited, Intensive Fiscal Services Private Limited, and Motilal Oswal Investment Advisors Limited are the book-running lead managers of the issue, with MUFG Intime India Private Limited as the registrar. The shares are proposed to be listed on the National Stock Exchange of India Limited and BSE Limited.

Waterways Leisure Tourism, operating under the brand ‘Cordelia Cruises’, currently offers trips on the ‘MV Empress’. The cruise line has successfully hosted over 5,49,051 guests, covering more than 2,25,079 nautical miles along India's coastlines and adjacent islands. The company is planning further expansion with the introduction of two new cruise ships, ‘Norwegian Sky’ and ‘Norwegian Sun’, accommodating 2,004 and 1,936 passengers respectively.

In Fiscal 2024, the company claimed around 65% market share in value terms. Its current routes include domestic destinations like Mumbai, Goa, and Chennai, as well as international stops in Sri Lanka and future voyages to Thailand, Singapore, and Malaysia. This diverse route map is matched by an array of on-board experiences ranging from luxury cabins to themed entertainment.

The cruise experience boasts a wide range of culinary options, including pan-Asian and Indian cuisine, complemented by themed entertainment inspired by Indian Cinema. Additionally, the company provides a variety of amenities such as a children's academy and a casino, along with arrangements for ‘MICE’ events and weddings.

As of the end of Fiscal 2024, the company's revenue from operations stood at Rs 442.11 crore, with a profit after tax of Rs 139.25 crore for the nine months ending December 31, 2024. This financial performance highlights the company's robust growth trajectory and market prominence as it prepares for this IPO.

Furthermore, during the redevelopment of the Mumbai International Cruise Terminal, Waterways Leisure Tourism maintained operations via a temporary terminal at Green Gate, Mumbai Port. This adaptability underscores its commitment to continuous service and infrastructure development.

Looking ahead, Waterways Leisure Tourism plans to enhance its offerings with new cruise itineraries, tailored services for various traveller segments, and upgraded dining and entertainment options. This strategic approach aims to strengthen its position as a leader in the Indian cruise industry.