Operator of Cordelia Cruises' Stock Price Hits 10% Upper Circuit After Weak Public Listing

The stock price of newly-listed Waterways Leisure Tourism, the operator of Cordelia Cruises, surged 10% to hit an upper circuit at Rs 734.05 on the BSE on Thursday, July 2, signalling a fresh record high as investors showed interest in the stock a day after its weak stock market debut.

The company made a muted debut on Wednesday, July 1, with its shares listing at a discount of nearly 16% to the initial public offering (IPO) price.

On the NSE, Waterways Leisure Tourism shares listed at Rs 681 apiece, 15.72% lower to the issue price. On the BSE, the stock listed at Rs 690, signalling a 14.60% discount. The company had launched its Rs 585-crore IPO with a price bandwidth of Rs 769-808 per share.

Despite the subdued listing, the shares witnessed strong buying interest in trade today with shares climbing to their highest-ever level on the BSE.

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Waterways Leisure Tourism IPO

The Rs 585-crore IPO had consisted of an entirely fresh issue of 0.72 crore equity shares, with no offer-for-sale (OFS) component.

The issue had sailed through on the final day of bidding, driven majorly by strong participation from retail investors. Overall, the IPO was subscribed 1.46 times during the bidding period from June 23 to June 25. Ahead of the public issue, Waterways Leisure Tourism had raised Rs 263.25 crore from anchor investors.

The retail investor portion was subscribed 4.19 times, while the non-institutional investor (NII) category received subscriptions of 1.17 times. In contrast, the qualified institutional buyers (QIB) segment remained undersubscribed, garnering bids for only 69% of the shares reserved for institutional investors.

As per the company, the net proceeds from the issue were proposed to be primarily utilised towards meeting the lease-related obligations of its step-down subsidiary, Baycruise Shipping and Leasing (IFSC) Pvt. Ltd., while the remaining funds were to be used for general corporate purposes.

As of 12:22 PM, the shares of Waterways Leisure Tourism was trading 9.99% higher at Rs 734.05 apiece.