Shares of Waterways Leisure Tourism Ltd hit a 10% upper circuit to ₹54.45 on the BSE on July 2, recovering from a weak market debut a day earlier. The stock had listed at ₹49.50 on July 1, a 5.7% discount to its issue price of ₹52.50, disappointing investors who had bid for the initial public offering (IPO).
Market Debut and Recovery
The company made its stock market debut on July 1 with a listing price of ₹49.50, which was below the upper price band of the IPO. However, on the second day of trading, the stock saw strong buying interest, hitting the upper circuit limit of 10% in early trade. The stock closed at ₹54.45, giving investors a gain of 10% from the listing price and a modest 3.7% from the issue price.
IPO Details
Waterways Leisure Tourism's IPO was open for subscription from June 24 to June 26, with a price band of ₹50 to ₹52.50 per share. The IPO was a fresh issue of 48.80 lakh shares, worth approximately ₹25.62 crore at the upper price band. The funds raised are intended for the company's expansion plans, including the development of new water sports and leisure tourism facilities.
According to the company's prospectus, it plans to use the proceeds for setting up new water sports centers, purchasing equipment, and working capital requirements. The IPO was fully subscribed, with strong demand from retail investors, though institutional interest was muted.
Company Background
Waterways Leisure Tourism Ltd is a company engaged in the business of water sports, leisure tourism, and related activities. It operates water sports centers in various tourist destinations across India, offering activities such as jet skiing, parasailing, banana boat rides, and other water-based entertainment. The company has been operating for over a decade and has a presence in Goa, Kerala, and other coastal regions.
The company reported a revenue of ₹18.5 crore for the financial year 2025-26, with a net profit of ₹2.3 crore. The IPO was managed by SMC Capitals Ltd as the lead manager, and the shares are listed on the BSE SME platform.
Market Reaction and Analyst Views
Market analysts noted that the weak debut was likely due to the small size of the IPO and the company's niche operations. However, the recovery on the second day indicates renewed investor confidence. According to analysts, the company's strong brand presence in the water tourism sector and the growing demand for leisure tourism in India could support its growth prospects.
"The company has a unique business model and is well-positioned to benefit from the increasing interest in water-based tourism. The recovery in the stock price suggests that investors are now recognizing the long-term potential," said a market analyst at SMC Capitals.
Stock Performance and Outlook
At the upper circuit price of ₹54.45, the stock is trading at a price-to-earnings (PE) ratio of approximately 15 times its EPS for FY26. The company's market capitalization stands at around ₹26 crore. Going forward, the company's performance will depend on its ability to expand its operations and maintain profitability in a competitive leisure tourism market.
