EXPLAINED! Are Waterways Leisure Tourism shares really down by 90%?

Waterways Leisure Tourism, which operates the Cordelia Cruises brand, has set 26 August as the record date for its first-ever 1:10 stock split. With the record date falling on Wednesday, today is the final trading day for investors to purchase the shares and qualify for the corporate action.

The recently listed travel company had announced the stock split only seven trading sessions after making its stock market debut on 1 July. Under the approved stock split, each fully paid-up equity share with a face value of ₹10 has been subdivided into 10 fully paid-up equity shares with a face value of Re 1 each.

The company’s paid-up equity share capital remains unchanged at ₹723.95 million. However, the total number of outstanding equity shares has increased tenfold, from 7,23,94,543 to 72,39,45,430.

The subdivision is intended to make the company’s shares more accessible to a broader investor base, particularly retail investors. The corporate action is also expected to encourage broader participation and improve liquidity in the secondary market.

Under SEBI's T+1 settlement cycle, investors need to buy the shares at least one trading session before the record date to ensure that they are credited to their demat accounts in time. Therefore, today is the last day to buy Waterways Leisure Tourism shares to become eligible for the 1:10 stock split.

Jurgen Bailom, Chairman of the Board, Executive Director and CEO, Waterways Leisure Tourism Limited, said, "The 1:10 share sub-division is designed to make Waterways Leisure Tourism's equity more accessible by bringing down the face value per share from ₹10 to Re 1, thereby enabling participation at a lower per-share price point.

We believe this will make the stock more approachable for a wider investor base, particularly retail investors, while supporting greater participation and liquidity in the market. Importantly, the sub-division does not alter the Company's underlying value or paid-up capital, but improves the accessibility of our equity as we continue to execute our growth plans."

Waterways Leisure Tourism shares

Waterways Leisure Tourism share price rose over 3% on Tuesday to hit a record high of ₹107.50 apiece on the BSE. The stock's sharp decline from its IPO price of ₹808 is primarily due to the company's 1:10 stock split, which took effect on August 25, ahead of the August 26 record date.

Following the corporate action, Waterways Leisure Tourism shares began trading ex-split on August 25. Therefore, the apparent fall in the share price does not reflect an equivalent decline in the company's market value, as each existing share was subdivided into 10 shares.

Waterways Leisure Tourism share price today opened at ₹102.90 apiece on the BSE, the stock touched an intraday high of ₹107.50 per share, and an intraday low of ₹101.30 per share.

Waterways Leisure Tourism, the operator of the Cordelia Cruises brand, had a muted stock market debut on 1 July, listing at ₹681 per share on the BSE, a discount of more than 16% to its IPO price of ₹808.

Waterways Leisure Tourism is India’s largest domestic ocean cruise operator and owns the Cordelia Cruises brand. Its flagship vessel, MV Empress, can accommodate more than 2,000 passengers and operates across several domestic destinations, including Mumbai, Goa, Kochi, Chennai, Lakshadweep, Visakhapatnam and Puducherry. The company also offers select international cruise itineraries to destinations such as Sri Lanka, Thailand, Singapore and Malaysia.

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