Cordelia Cruises Operator Jumps 8% As Board to Consider Stock Split Days After Market Debut

Mumbai, July 7: Shares of Waterways Leisure Tourism, the operator of Cordelia Cruises, climbed as much as 8% on Tuesday after the company announced that its board will consider a proposal to split its equity shares at a meeting scheduled for July 10. The announcement comes less than a week after the company’s stock market debut and sparked fresh buying interest in the newly listed counter.

The stock rebounded after a volatile start to its listed journey. Waterways Leisure Tourism had debuted on the exchanges on July 1 at a discount of nearly 16% to its IPO price of Rs 808 per share, reflecting muted listing-day sentiment despite healthy retail participation in the public issue. As of writing the stock was up 7% at Rs 819.

Board to consider stock split

In an exchange filing, the company said its board of directors will meet on July 10 to consider and approve, subject to shareholder and regulatory approvals, a proposal for the sub-division of the face value of its equity shares.

Stock has been doing a zigzag ever since its debut last week. Source: NSE

The company has not yet disclosed the stock split ratio. If approved, the move would be among the first corporate actions by the company since its listing and is expected to improve the stock’s liquidity and make it more affordable for retail investors.

A stock split increases the number of outstanding shares while proportionately reducing the face value and market price per share, without changing the overall value of an investor’s holdings.

Strong trading momentum after listing

After its weak market debut, the stock has witnessed sharp swings over the past few trading sessions. After listing below its issue price, the shares rebounded strongly, hitting consecutive upper circuits before going down and then rebounding on Tuesday following the stock split announcement.

The Rs 585-crore IPO of Waterways Leisure Tourism was subscribed 1.46 times overall, with strong demand from retail investors offsetting relatively subdued interest from institutional buyers. The public issue consisted entirely of a fresh issue of shares, with the proceeds earmarked primarily for lease-related payments and general corporate purposes.

Expansion plans in focus

Waterways Leisure Tourism operates Cordelia Cruises, India’s only premium domestic ocean cruise brand. The company currently operates the MV Empress and has signed agreements to induct two additional cruise ships—Norwegian Sky and Norwegian Sun—over the next two financial years to significantly expand its fleet and passenger capacity.

Investors will now closely watch the outcome of the July 10 board meeting for details of the proposed stock split. While the move does not alter the company’s fundamentals, market participants generally view stock splits positively as they improve liquidity, widen retail participation and often boost trading interest in the stock.

Source: https://www.nseindia.com/get-quote/equity/CORDELIA/Waterways-Leisure-Tourism-Limited