Waterways Leisure Tourism, the company behind Cordelia Cruises, has announced that its board of directors will convene on Friday, July 10, to consider a stock split. This corporate action comes remarkably soon after the company's market debut, which occurred on Wednesday, July 1. By the time of the board meeting, the stock will have completed only eight trading sessions.
The announcement follows a period of significant volatility and upward movement for the company's shares. Since listing, Waterways Leisure Tourism's stock has seen a substantial 32% increase from its post-listing low of Rs 623.30 on July 1, reaching a high of Rs 819.75 on Monday, July 6. Despite this rapid gain, the share price remains below its initial public offering (IPO) price of Rs 808.
A stock split is a common corporate strategy designed to enhance liquidity by reducing the per-share price and increasing the total number of shares in circulation. While the overall market capitalization of the company remains unchanged after adjustment, the lower price per share can make the stock more accessible and attractive to a broader range of investors. Currently, Waterways Leisure Tourism shares have a face value of Rs 10 each.
The company's Rs 585 crore IPO was subscribed 1.53 times during its three-day bidding period, with retail investors showing strong demand, subscribing their portion 4.4 times. Qualified institutional buyers subscribed to 72% of their quota, while non-institutional investors' portion was subscribed 1.23 times. The company also secured Rs 263.5 crore from anchor investors.
Waterways Leisure Tourism operates one cruise vessel, MV Empress, which features 796 cabins. Expanding its fleet, the company has also entered into time charter agreements to lease two additional vessels: 'Norwegian Sky,' slated for introduction this year, and 'Norwegian Sun,' expected in the financial year 2028. These vessels boast capacities of 2,004 and 1,936 guests, respectively. Post-IPO, promoter holding stands at 89%, contributing to a smaller free float in the market, with the company's total market capitalization nearing Rs 5,800 crore.