Waterways Leisure Tourism, the operator of the Cordelia Cruises brand, on Friday announced a stock split in the ratio of 1:10 just seven trading sessions after the shares of the company made their market debut on July 1.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.Also read: Bharti Airtel fixes record date for its highest-ever dividend of Rs 24/share.
