Smallcap company announces 1:10 stock split 7 days after listing on market
The company announced that its board of directors during its meeting today approved the plan to split each of its equity shares with a face value of Rs 10 each to 10 shares with a face value of Rs 1 each, subject to shareholders’ approval.
Waterways Leisure Tourism said that the stock split was aimed to enhance liquidity of the stock to make it more affordable and accessible to a wider base of investors.
“The stock split is expected to increase trading volumes and broaden the shareholder base of the company. The sub-division does not affect the overall capital structure or intrinsic value of the company,” it added.
The record date for the stock split is yet to be determined. Waterways Leisure Tourism said it is expected to be completed within three months from the date of shareholders’ approval, subject to necessary regulatory approvals.
While the number of outstanding shares increases, the company’s overall market capitalisation remains unchanged. A lower share price can make the stock more accessible to retail investors, potentially improving participation and trading volumes.
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Waterways Leisure Tourism made a weak debut on stock market on July 1, listing at Rs 681 apiece on BSE. This marked a discount of more than 16% from the stock’s IPO price of Rs 808 apiece.
The stock then sharply surged more than 33% to hit a record high at Rs 908.30 apiece. It has fallen more than 6% since then to trade at Rs 849.95 apiece on Friday afternoon. The stock is still 25% higher than the listing price.
This comes after the Rs 585 crore initial public offering of Waterways Leisure Tourism was subscribed 1.63 times, with retail investors emerging as the strongest participants. They subscribed their reserved portion more than 4 times. The portion kept for Non-Institutional Investors (NIIs) was subscribed 1.18 times, while the Qualified Institutional Buyers (QIBs) category was subscribed 1.01 times.
Waterways Leisure Tourism is India’s largest domestic ocean cruise operator and owns the popular Cordelia Cruises brand. Its flagship vessel, MV Empress, has a passenger capacity of more than 2,000 and operates cruises across key domestic destinations, including Mumbai, Goa, Kochi, Chennai, Lakshadweep, Visakhapatnam and Puducherry. The company also offers select international sailings to Sri Lanka, Thailand, Singapore and Malaysia.
Also read: Waterways Leisure shares slip on debut, list at 16% discount to IPO price
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