In an exchange filing on Monday evening, the Cordelia Cruises operator announced that it will be considering a stock split at its board meet on Friday, July 10. Currently, each share of the company carries a face value of ₹10 each.
Waterways Leisure Tourism has only completed four full trading days, and Friday will be the eighth trading day of the company, when its board could potentially announce a stock split.
A stock split is generally carried out by a company to increase the liquidity of the stock. It brings down the share price, increases the number of shares available, but the value of the shares remain the same due to the adjustment.
In its four full trading days, Waterways Leisure Tourism shares have had two upper circuits of 10% each, while ending its trading debut at a discount of 17% to its issue price. The stock also ended 5.5% lower on Wednesday.
Waterways Leisure Tourism’s ₹585 crore IPO was subscribed 1.53 times the number of shares on offer during the three-day period. The subscription was led by retail investors, whose portion was subscribed 4.4 times.
The portion reserved for Qualified Institutional Bidders (QIBs) was only subscribed 72% the total number of shares on offer. Non-Institutional (NII) portion saw 1.23 times subscription. It had also raised ₹263.5 crore from anchor investors ahead of its IPO.
Currently, the company operates one cruise vessel, the MV Empress, which has a total of 796 cabins. The company has entered into time charter agreements to acquire two new cruise vessels on lease, namely the “Norwegian Sky” and “Norwegian Sun”, each of whom will have a capacity of 2,004 and 1,936 guests respectively. While the former will be introduced this year itself, the latter will come on board in financial year 2028.
Promoter holding in the company still stands at 89% after the IPO, meaning less free float in the market, subjecting the stock to volatile price moves on either side.
The stock currently trades below its IPO price of ₹808.
