Waterways Leisure Tourism approves 1:10 stock split after IPO rally
India's Waterways Leisure Tourism is splitting its stock to boost retail liquidity after recovering from a weak market debut to trade above its issue price.
Waterways Leisure Tourism’s board has approved a 1:10 stock split, dividing each equity share with a face value of ₹10 into 10 fully paid-up shares of Re 1 each. The move comes just weeks after the Indian ocean cruise operator's volatile market debut, with shares now trading above their initial issue price. The subdivision remains subject to shareholder approval, and the record date will be announced once those clearances are obtained.
The cruise line listed on July 1 at a 16% discount to its ₹808 issue price, closing its first session at ₹668. However, the stock subsequently rallied roughly 30% to hit ₹862, putting it 6.7% above its IPO price. Management is now moving to capitalize on that momentum by making the stock more accessible to retail investors.
A stock split increases the total number of outstanding shares while proportionately reducing the share price, leaving market capitalisation unchanged. Waterways Leisure stated the action is specifically designed to enhance share liquidity, broaden its shareholder base, and drive up trading volumes. For a recently listed company, increasing retail market participation can help establish a deeper, more stable aftermarket.
The operator runs India's leading domestic cruise line under the Cordelia Cruises brand, utilizing a dynamic pricing model across its 796 cabins. Nightly fares range from ₹25,230 to ₹1,15,536, with its flagship vessel, MV Empress, having hosted over 5.49 lakh guests as of December 31, 2024. During the redevelopment of the Mumbai International Cruise Terminal, the company also operated a temporary terminal at Green Gate, Mumbai Port.
Investors should note the capital-intensive nature of the underlying business. Waterways Leisure raised ₹585 crore in its June offering, which saw modest demand at 1.46 times subscription. The company plans to direct ₹480 crore of those net proceeds toward lease deposits, advance rentals, and monthly lease payments to a step-down subsidiary. This heavy allocation to leasing underscores the operator's reliance on chartered vessels to service its domestic and select international itineraries.
