Cordelia Cruises IPO Faces Weak Day 1 Subscription: Only 16% Booked Amid GMP Decline
Waterways Leisure Tourism, the issuer of the Cordelia Cruises initial public offering (IPO), witnessed sluggish investor appetite on Tuesday. The Rs 585-crore issue received limited subscription on the first day of share sale, achieving only 16 percent of the shares available. This outcome signals a cautious market reaction to the cruise operator's listing.IPO Subscription Breakdown and Details
As reported by NSE data up to 4:10 pm, the IPO was offered 41.84 lakh shares but received bids for just 6.85 lakh shares. The subscription level varied across different investor categories.The retail investors portion of the sale fetched an 85 percent subscription. However, the Non-Institutional Investors (NII) quota saw a significantly lower response rate, coming in at only 3 percent subscribed. The company has set a price band for its IPO ranging from Rs 769 to Rs 808.
Financial Performance and Use of Proceeds
The IPO is structured as a fresh issue totaling up to Rs 585 crore. The management provided clarity on how the funds raised will be utilized. A portion amounting to Rs 480 crore is earmarked for payment towards lease rental and monthly lease payments for its step-down subsidiary, Baycruise Shipping and Leasing (IFSC) Private Limited.The remaining balance of proceeds from the fresh issue will be allocated to general corporate purposes within the company. Financially, the operations showed a positive trend over the past few years. The company recorded operational revenue of Rs 580 crore in FY26, compared to Rs 444 crore in FY24.
Profitability and Market Presence
The profitability metrics show marked improvement for the organization. While FY26 saw net profit stand at Rs 52 crore, a substantial turnaround was noted from the loss of Rs 123 crores recorded during FY24.Geographically, Cordelia Cruises offers diverse international itineraries. These include destinations such as Hambantota and Trincomalee in Sri Lanka, Phuket in Thailand, Singapore, Kuala Lumpur, and Langkawi in Malaysia. The cruises are designed to showcase India's coastal regions and cultural heritage.
Market Share Insight
Data from Crisil indicates that the company held approximately 79 per cent of the market share by value terms during FY25. This indicates a strong operational footprint within its specialized cruise market segment despite the weak initial IPO subscription. The offering will close on June 25, providing investors one final opportunity to participate in the sale.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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