Mumbai -based cruise operator Waterways Leisure Tourism wants to raise up to Rs 727 crore through its IPO. For this, the company has filed draft papers near the capital market regulator SEBI. Waterways Lazer Tourism runs business under Cordelia Cruise brand. For the first time in the country, an IPO of a cruise operator is coming. There will be only new shares in it, there will be no offer for sale. Therefore, IPO’s entire earnings will go to the company. Global Shipping and Leisure and Rajesh Chandumal Hotwani are promoters of Waterways Leisure Tourism, who hold 99.27 percent.
In FY 2024, Waterways Lazer Tourism claimed about 65 percent market share in value terms. Its cruise vessel mainly leaves for domestic destinations such as Mumbai, Goa, Kochi, Chennai, Lakshadweep, Visakhapatnam and Puducherry. Waterways Leisure Tourism Limited was started by NRI Rajesh Hotwani in collaboration with Hitesh Vakil of Mumbai. Hotwani has been living in Mauritius for 20 years.
Adding 2 more ships to its fleet will increase the guest capacity of Waterways Leisure Tourism by 4,000 passengers. This will make the total capacity of about 6,000. Apart from this, new vessels will have 1,800 to 2,200 new staterooms and suites.
How to use IPO money
Waterways Leisure Tourism will use Rs 552.5 crore from its IPO for deposit/advanced lease rent and step-down subsidiary ‘Bekruz Shipping and Leasing’ will be used for payment of monthly lease for the purchase of ships on lease. The remaining money will be used for general corporate purposes. The company wants to add two more ships to its fleet. The company said in the DRHP deposited on June 13, “The total lease fare for the purchase of each vessel (Norwegian Sky and Norwegian Sun) is $ 16 million, or about Rs 1,371.04 crore (except GST).”
Financial status of Waterways Leisure Tourism
The company recorded a net loss of Rs 120 crore for the financial year 2023-24. Earlier in the financial year, the company had a profit of Rs 55.3 crore. Revenue declined by 8.3 percent to Rs 442.1 crore in FY 2024, which was Rs 481.9 crore in FY 2023. During April-December 2024, the company’s profit was Rs 139.3 crore and revenue was Rs 409.5 crore. The merchant bankers who handle Cordelia Cruise IPO will be Sentrum Capital, Intensive Fiscal Services and Motilal Oswal Investment Advisors.
