Waterways Leisure Tourism's Cruise IPO Set to Open: Anchor Investors Pump in Rs 263 Crore Ahead of Public Listing
Domestic ocean cruise operator, Waterways Leisure Tourism, has successfully raised Rs 263.25 crore through an anchor book deal with eight major investors. This capital injection comes just one day ahead of the company's maiden public issue, signaling strong institutional confidence in the maritime leisure sector. The total size of the upcoming IPO is Rs 585 crore.The company's IPO is slated to begin on June 23 and conclude on June 25. It carries a defined price band ranging from Rs 769 to Rs 808 per share. This issuance represents an entirely fresh issue, with the proceeds earmarked for strategic corporate growth and asset acquisition.
##Anchor Investor Response in Cruise Sector
The company finalized the allocation of 32.58 lakh equity shares to anchor investors at the upper price band. Nova Global Opportunities Fund led among these institutions, securing 6.31 lakh shares valued at Rs 51 crore. Cullinan Opportunities Fund followed closely, acquiring 6.21 lakh shares worth Rs 50.25 crore in the private book launch.
Zeal Global Opportunities Fund and M7 Global Fund also demonstrated significant interest, each purchasing 6.18 lakh shares for approximately Rs 50 crore. The anchor allocation also included Stellar Growth Fund, ASAS Global Fund, and Maybank Securities among the institutional buyers. A portion of the allocation was given to domestic mutual fund Baroda BNP Paribas Mutual Fund.
##Strategic Utilization of IPO Proceeds
Waterways Leisure Tourism intends to deploy a substantial part of the IPO proceeds for vessel acquisition. The company plans to utilize Rs 480 crore from the sale for deposit or advanced lease rental and monthly lease payments. These funds are designated for securing vessels through its step-down subsidiary, Baycruise Shipping and Leasing (IFSC).
The remaining capital infusion will be allocated toward general corporate purposes. The market size of this acquisition is vast, as the total estimated lease rental for one vessel amounts to $160 million, which approximates Rs 1,523.84 crore. Currently, the company operates the MV Empress, a cruise vessel focused primarily on domestic destinations.
##Recent Financial Performance Overview
The financial trajectory of Waterways Leisure Tourism has shown mixed results in recent fiscal periods. In the most recent period, profit decreased to Rs 52.1 crore from Rs 168.1 crore reported in the previous fiscal year. Correspondingly, revenue declined slightly during the same period, falling to Rs 579.7 crore from Rs 590.6 crore.
Centrum Broking is the sole merchant banker responsible for managing the Waterways Leisure Tourism IPO. The successful anchor subscription suggests institutional readiness ahead of the public listing.
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