India's Only Ocean Cruise Operator Files Draft Papers for $84.5 Million IPO
Cordelia Cruises is counting on a rising middle class to fuel demand. Launching an IPO is a bold play, but in an untapped market, being early may be everything.
India-based Waterways Leisure Tourism, the operator of Cordelia Cruises, is heading to the public markets with an IPO of up to INR 7.27 billion ($84.5 million). The move comes as the company looks to ramp up its capacity and capitalize on India's growing appetite for leisure travel.
The draft IPO paper explains that the company plans to use INR 5.5 billion ($64 million) from the IPO proceeds to fund lease rentals for these ships through its step-down subsidiary, Baycruise Shipping and Leasing (IFSC). The company said it would use the remaining funds for general corporate purposes.
Its cruise vessel — the MV Empress — primarily sails to domestic destinations such as Mumbai, Goa, Kochi, Chennai, Lakshadweep, Visakhapatnam, and Puducherry. It also offers international itineraries to Sri Lanka and has also sold cruise tickets for its first-time sail to Thailand, Singapore and Malaysia.
Waterways Leisure Tourism also plans to expand its fleet with two new ships — it expects to induct Norwegian Sky by fiscal 2026 and Norwegian Sun by fiscal 2027. The company will lease both ships through time charter agreements to keep the expansion asset-light.
The company builds its pitch to investors around forecasts that project India's overnight cruise market to grow from INR 8.9 billion ($103 million) in fiscal 2025 to INR 48 billion ($557 million) by fiscal 2030, at a compound annual growth rate of 35-40%. As of fiscal 2024, the company claims it holds a 65% share of the overnight ocean and coastal cruise industry in India.
Global Shipping and Leisure Limited and Rajesh Chandumal Hotwani promote Cordelia and together hold 99.27% of the company's equity before the IPO.
Cordelia's Growth Plans
The company said in the draft papers that each new ship will nearly double the capacity of the fleet. Cordelia says this move will help 'streamline procurement, training, and maintenance processes' and improve profitability.
However, the company while acknowledging the risk mentions that running its operations through a single vessel exposes it to concentrated operational risks.
In its own words, Cordelia notes: 'We do not have the operational flexibility to mitigate these risks through alternative vessels or operational strategies… Any disruption to the operations of this cruise vessel… could lead to operational disruptions that could have an adverse impact on our business, results of operations, and financial condition and cash flows.'
The Company Financials
Cordelia has stated in the draft paper that its revenue for fiscal 2024 stood at INR 4.4 billion ($51 million), slightly down from fiscal 2023. However, it turned a corner on profitability. After posting a loss of INR 1.2 billion ($14 million) in fiscal 2024, the company reported a profit of INR 1.4 billion ($16 million) for the nine months ended December 2024.
Other operating metrics show improvement too. Occupancy rates rose from 78.5% in fiscal 2023 to 86.3% for the nine months ending December 2024. The average ticket price also saw an uptick from INR 9,243 ($107) to INR 10,605 ($123) per passenger.
The company stated that 90% of its revenue comes from ticket sales alone.
What Drives Cordelia's IPO Ambition
Cordelia Cruises is placing a confident bet on India's demographic and economic landscape. The cruise operator sees long-term potential in the country's growing middle class, expanding working-age population, and rising disposable incomes.
In its draft papers, the company said almost 39% of India's population would be under 25 by 2030. Another 38% will fall into the 25–49 age bracket, identified by the company as the core segment for discretionary spending. This youthful, working population is a major reason Cordelia is bullish. As they enter peak earning years, their appetite for leisure travel is expected to grow, along with a preference for curated, premium experiences like cruising.
The company also points to encouraging income shifts. The share of high-income individuals — those earning more than INR 3 million annually — is projected to rise from 4% in 2021 to 11% by 2031 and 26% by 2047. At the same time, the share of people in the middle and high-income brackets combined is forecast to jump to 95% by 2031.
Cordelia believes these trends signal an emerging market for luxury and lifestyle services. 'This growth in disposable income may also lead to an increase in spending on luxury and leisure sectors, including cruise, as consumers seek to enhance their lifestyle," the company said in its draft papers.
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