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Cruise Operator Eyes Stock Split Days After IPO
7 Jul
Summary
- Waterways Leisure Tourism considers stock split on July 10.
- Company operates one cruise vessel, with two more planned.
- Stock trades below its IPO price of ₹808.
Waterways Leisure Tourism Ltd., which debuted on the stock exchange on Wednesday, July 1, announced on Monday evening that its board will consider a stock split on Friday, July 10. This potential corporate action follows only four full trading days since the company's market debut.
A stock split aims to enhance market liquidity by lowering the per-share price, thereby increasing the number of shares available without altering the total market value. Waterways Leisure Tourism's initial trading days saw significant price volatility, including two 10% upper circuits and a 17% discount on its debut.
The company's ₹585 crore IPO, which was subscribed 1.53 times, saw strong interest from retail investors. Currently, Waterways Leisure Tourism operates the MV Empress and has agreements to lease two additional vessels, the 'Norwegian Sky' and 'Norwegian Sun', with capacities for 2,004 and 1,936 guests, respectively.
Despite the IPO, promoter holding remains at 89%, suggesting a limited free float and potential for further price fluctuations. The stock is currently trading below its IPO price of ₹808.
