Kotak Mahindra Bank has announced a stock split in the ratio of 1:5, the first such move by the bank since 2010. Under this plan, each existing share with a face value of ₹5 will be split into five shares of ₹1 each. The move is aimed at making the bank’s shares more affordable and accessible to a wider group of investors.
The announcement comes as the bank celebrates its 40th anniversary, marking an important milestone in its growth journey. Kotak Mahindra Bank said the stock split is part of its efforts to increase liquidity in its shares and encourage more participation from retail investors, who can now buy smaller units of the stock at a lower price.
The board’s decision is subject to approvals from regulators and shareholders. The bank has not yet announced a record date, which will determine which shareholders are eligible to receive the split shares.
Kotak Mahindra Bank has grown steadily over the years and is among India’s leading private sector banks. Analysts say that a stock split does not affect the overall value of an investor’s holdings but makes trading more convenient by reducing the per‑share price.
On the day of the announcement, Kotak Mahindra Bank’s shares saw minor fluctuations, reflecting investor interest in the news. Financial experts note that stock splits can often attract more retail investors and improve market liquidity, as more people can afford to buy shares at a lower face value.
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