Waterways Leisure Tourism to consider stock split today, eight days after listing

Waterways Leisure Tourism to consider stock split today, eight days after listing


Shares of Waterways Leisure Tourism Ltd. will be in focus on Friday, July 10, ahead of its board meet to consider a stock split. The bigger news is the fact that the board meet to consider a division of its equity shares comes just eight days after the company made its stock market debut.

The stock made its debut on July 1, and in the seven completed sessions so far, the stock has gained in five of them, including an upmove for three consecutive days going into today’s trading session.

During this three-day gaining streak, the stock has recovered its listing day losses, and now trades above its IPO price of ₹808.

The stock had listed at a discount to its issue price and had ended 17% lower on its trading debut.
Currently, the company’s shares carry a face value of ₹10 each.

When the stock split does take place, investors will see an increase in the number of shares, though their value will remain the same as the price adjusts accordingly. A stock split is generally carried out to increase liquidity in the particular stock.

The three-day IPO of the Cordelia Cruise operator was subscribed 1.53 times the total shares on offer, led by the retail portion, who put in bids worth 4.42 times their allocated shares. The portion reserved for institutional investors was subscribed only 72%.

Waterways Leisure currently operates only one cruise vessel with 796 cabins, but has entered into time charter agreements to acquire two new vessels on lease. One of those vessels will be introduced this financial year itself, while the other will be introduced next year.

The company currently has limited free float with promoters continuing to hold 89% stake in the company even after the IPO, which is higher than the Minimum Public Shareholding norms of 75%. Dates for its shareholder lock-in ending are yet to be determined.

Shares of Waterways Leisure Tourism ended 4.5% higher on Thursday at ₹858.



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