Waterways Exclusive Interview: Cordelia makes people happy, our growth to answer every question in 1-2 years, says CEO

Waterways Leisure Exclusive Interview: In an exclusive interview with Zee Business Managing Editor Anil Singhvi on Thursday, Jurgen Bailom, Chairman, Executive Director and CEO of Waterways Leisure Tourism, addressed concerns over the IPO's muted response, valuation, ownership-related questions, expansion plans and the long-term outlook for India's cruise tourism industry.

Shares of Waterways Leisure Tourism Ltd, the operator of the Cordelia Cruises brand, made their stock market debut on July 1. The public issue was subscribed 1.67 times overall, while the retail investor portion was subscribed 4.19 times.

However, the stock surged to the 10 per cent upper circuit at Rs 734.05 on the BSE on Thursday, July 2.

CEO blames 'negative publicity' for muted IPO response

Responding to questions on why the IPO failed to attract stronger investor participation despite the company's niche business model, Bailom said the issue had received an encouraging response on the first day of bidding.

"We had an excellent response on Day 1. Our retail portion was oversubscribed within hours. But suddenly everyone turned against us, and I was not given the opportunity to answer any questions," he said.

According to Bailom, negative publicity surrounding the IPO adversely impacted investor sentiment.

"My sources are telling me that this was completely instigative," he said, alleging that negative reports were circulated without giving the company an opportunity to present its side.

When Anil Singhvi asked whether the company and its IPO had been deliberately targeted despite strong business fundamentals, Bailom said Waterways Leisure Tourism operates in a business focused on delivering holiday experiences.

"We are in the business of making people happy. We are providing vacations for Indians, the Indian way. I don't see any reason why rumours should be spread that we are not a successful business," he said.

Why were three merchant bankers reduced to one?

Bailom also explained the company's decision to reduce the number of merchant bankers from three to one before the IPO.

He attributed the move to geopolitical tensions in the Middle East and heightened market volatility, saying the prevailing market conditions made it more practical to proceed with a single lead merchant banker.

According to him, the decision was taken on the advice of the lead banker and in compliance with SEBI regulations.

Retail quota was as per SEBI norms: Bailom

Addressing concerns over allocating only 10 per cent of the IPO for retail investors, Bailom clarified that the allocation strictly followed SEBI regulations.

He said the company could not allocate shares beyond what is permitted under the regulatory framework

"We cannot go beyond SEBI's prescribed framework," he said.

CEO explains Rs 1,500 crore-plus expansion funding

When asked how the company plans to fund lease commitments exceeding Rs 1,500 crore, Bailom said investors should view the expenditure as a long-term investment rather than an immediate financial obligation.

He explained that the lease payments would be spread over time through monthly rentals and would primarily be used to acquire new cruise ships that would support the company's future expansion.

"This is an investment in the company's future. The amount is not required tomorrow. Our focus is on building the business over the next 10 years," he said.

Ownership allegations 'baseless'

Bailom also rejected questions surrounding the company's ownership structure, describing the allegations as baseless.

He said buying and selling businesses is a normal commercial practice and recalled that the company identified an opportunity in the cruise business during the COVID-19 pandemic.

"It was a standard business transaction. There is nothing unusual about it," he said.

CEO sees strong runway for India's cruise tourism industry

Expressing confidence in the Indian cruise market, Bailom said India possesses one of the world's largest coastlines, spanning nearly 11,000 kilometres, and offers enormous untapped potential.

He noted that Indians have been travelling on cruises for over 25 years and highlighted that Cordelia made cruise vacations accessible without requiring passports or visas for certain domestic itineraries.

According to Bailom, corporate travel, meetings, incentives, conferences and exhibitions (MICE), as well as destination weddings, are emerging as important growth drivers for the company.

He added that Cordelia Cruises has become a preferred destination for weddings in India.

CEO defends valuation with profitability and expansion plans

On concerns that the IPO was aggressively priced, Bailom defended the company's valuation by highlighting its financial performance and expansion pipeline.

He said the company generated around Rs 600 crore in revenue during FY26 from a single cruise ship with approximately 800 cabins, while remaining profitable and cash flow positive.

Bailom also claimed that Waterways Leisure Tourism is the world's only debt-free cruise company.

Looking ahead, he said two additional cruise ships are expected to join the fleet shortly, increasing overall capacity by around 250 per cent, while luxury cabin capacity is projected to rise nearly 1,000 per cent.

The company also plans to add another 2,000 cabins, taking its overall capacity to nearly 2,800 cabins in the future.

According to Bailom, bookings for the upcoming cruise ships have already commenced, reflecting continued demand as cruise holidays are typically booked well in advance.

"We are a destination, not a travel company," he said.

Long-term vision centred on Cruise Bharat Mission

Speaking about the company's long-term strategy, Bailom said India presents enormous opportunities for cruise tourism, supported by the government's infrastructure push.

He referred to the Centre's Cruise Bharat Mission, saying the initiative could significantly accelerate the development of the domestic cruise ecosystem. He added that Prime Minister Narendra Modi has shown keen interest in promoting the sector.

Bailom said India currently has six advanced cruise ports, while another 27 ports are expected to be developed over the next five years.

Besides expanding its ocean cruise operations, the company is also working on river cruise opportunities and has prepared a detailed 10-year roadmap for growth, which includes increasing the fleet and developing new private cruise destinations.

'Invite me again in two years'

Concluding the interaction, Bailom confidently challenged critics of the company and its IPO.

Concluding the decision, he said, "Invite me again after one or two years. The growth of our business will answer every question. Those who chose not to invest today may regret that decision."