Waterways Leisure Tourism, a leading domestic ocean cruise operator in India, announced its Board of Directors has approved a 1:10 stock split, pending shareholder approval, the company said on Friday. The move aims to enhance liquidity and make shares more affordable for retail investors. The stock, which debuted below its issue price, rallied nearly 30% in subsequent sessions to reach ₹862 per share, according to livemint.com.
The stock split approval follows the company’s recent public listing, which initially saw a weak debut below the issue price. However, investor interest picked up quickly, driving the stock price higher. The Board’s decision to split shares into smaller denominations is intended to attract a broader base of retail investors by lowering the per-share price, thereby improving market accessibility and trading volumes.
Stock splits are a common strategy among listed companies to increase stock liquidity and appeal to retail investors without altering the company’s overall market capitalization. Waterways Leisure Tourism’s stock performance post-listing, with a nearly 30% rally, reflects growing investor confidence in the domestic cruise sector. This move aligns with trends seen in other recently listed companies aiming to boost retail participation in India’s capital markets.
The stock split will take effect after receiving shareholder approval at the upcoming general meeting. Waterways Leisure Tourism’s shares had touched ₹862 in recent trading sessions, marking a significant recovery from the initial listing price, as per livemint.com.