Cordelia Cruises IPO Sets Price Band as Market Anticipates Strong Debut Amid Niche Dominance

Cordelia Cruises IPO Sets Price Band as Market Anticipates Strong Debut Amid Niche Dominance​

Waterways Leisure Tourism Ltd., the operator of Cordelia Cruises, has formally set the price band for its highly anticipated Initial Public Offering (IPO). The company has fixed the price range at Rs 769 to Rs 808 per equity share. This IPO is scheduled to open for public subscription on June 23 and close on June 25.

Details of Cordelia Cruises IPO and Fund Utilization​

The offering comprises a fresh issue of shares amounting up to Rs 585 crore. Investors are mandated to bid for a minimum lot size of 18 equity shares, with subsequent multiples also set at 18 shares. A significant portion of the proceeds, specifically Rs 480 crore, will be utilized by the company.

These funds are designated for making deposits or advance lease rentals and ongoing monthly lease payments pertaining to its step-down subsidiary, Baycruise Shipping and Leasing (IFSC) Private Ltd. The remaining capital raised through the IPO will be allocated towards general corporate purposes. Centrum Capital, Intensive Fiscal Services, and Motilal Oswal Investment Advisors are serving as the book-running lead managers for this issue.

Market Sentiment and Grey Market Dynamics​

The market is showing positive anticipation surrounding the debut of Cordelia Cruises. Platforms tracking grey market activity indicate that the company's shares are currently commanding a Grey Market Premium (GMP) of nearly 7 percent. One platform, Investorgain, has quoted a GMP of Rs 54 for the share, suggesting a potential listing gain estimated at 6.68 percent.

Scope and Reach of Cordelia Cruises Operations​

Waterways Leisure Tourism operates Cordelia Cruises, offering extensive cruise services across various domestic destinations. These include Mumbai, Goa, Kochi, Chennai, Lakshadweep, Visakhapatnam, and Puducherry. The company's itineraries are thoughtfully designed to showcase India's rich coastal regions and cultural heritage.

Beyond the domestic market, the cruises also feature international itineraries. Destinations covered include Hambantota, Trincomalee, and Jaffna in Sri Lanka, Phuket in Thailand, Singapore, Kuala Lumpur, and Langkawi in Malaysia.

Corporate Market Share and Financial Performance Review​

The company demonstrates a strong foothold within the industry landscape. A Crisil report cited by the company reveals that Cordelia Cruises held approximately 79 percent market share in value terms during FY25. For FY24, the company reported holding about a 65 per cent market share in value terms.

Financially, the company faced volatility across fiscal periods. For the year ending March 2024, the entity registered a net loss of Rs 120 crore, contrasting sharply with a profit of Rs 55.3 crore recorded in the preceding fiscal year. Revenue subsequently declined by 8.3 percent to Rs 442.1 crore from the prior year's figure of Rs 481.9 crore.

However, the nine-month period ending December 2024 saw a turnaround. The company posted a profit of Rs 139.3 crore on total revenue of Rs 409.5 crore for that period.