Waterways Leisure Tourism Ltd made a weak stock market debut on Wednesday, with its shares listing at a discount on the bourses after the company’s initial public offering (IPO) saw modest overall demand and was driven largely by retail investors.
On the NSE, the stock debuted at ₹681, a discount of 15.7 per cent to the IPO price of ₹808 per share. On the BSE, the stock listed at ₹690, reflecting a discount of 14.6 per cent.
Following the weak listing, Shivani Nyati, Head of Wealth at Swastika Investmart, advised allotted investors to continue holding the stock with a long-term perspective, while suggesting fresh investors wait for better earnings visibility and more attractive entry levels. She added that the stock is better suited for long-term investors than those seeking listing gains, with a stop loss of ₹640 on a closing basis.
The ₹585-crore IPO was subscribed 1.46 times on the final day of bidding, receiving bids for 60,93,900 shares against 41,84,004 shares on offer, according to NSE data.
The retail investor portion was subscribed 4.19 times, while the non-institutional investor (NII) category was booked 1.18 times. The qualified institutional buyers’ (QIB) portion was subscribed 69 per cent till 4 pm on the final day, putting the IPO under pressure.
Under SEBI rules, if the QIB portion is undersubscribed for a loss-making company, the unsubscribed portion cannot be reallocated to retail or non-institutional investors, even if those categories witness stronger demand.
However, the IPO eventually managed
Ahead of the public issue, Waterways Leisure Tourism raised ₹263.25 crore from anchor investors.
The company had fixed a price band of ₹769-808 per share for the IPO.
The public issue comprised entirely a fresh issue of 72 lakh equity shares, with no offer-for-sale (OFS) component.
The company will utilise the proceeds towards lease payments for its step-down subsidiary, Baycruise Shipping and Leasing (IFSC) Pvt Ltd, and for general corporate purposes.
Waterways Leisure Tourism operates Cordelia Cruises, India’s domestic ocean cruise brand, offering luxury cruise experiences across domestic and international destinations.