Last Updated 24 November 2025, 1:10 PM IST – Kotak Mahindra Bank has officially approved a 1:5 stock split, marking its 40th Foundation Day with one of its most significant corporate actions in 15 years. The announcement, combined with Monday’s positive market sentiment, pushed the stock above ₹2,100, reflecting mild optimism among investors and F&O traders.
Unlike normal board announcements, this stock split actually matters for small investors because it makes Kotak Bank shares cheaper and easier to buy. And unlike a dividend or bonus, a stock split doesn’t increase your money — it only gives you more shares by reducing the price of each share, so your total value stays the same.
What Exactly Has Been Approved?
Kotak Mahindra Bank’s board has cleared the proposal to subdivide existing equity shares of face value ₹5 into five shares of face value ₹1 each.
This means:
- 1 existing share → 5 new shares
- Face value ₹5 → ₹1
The proposal is now subject to shareholder approval and necessary regulatory clearances. Once approved, Kotak will announce the record date and ex-split date, which usually drives short-term trading activity.
Market Reaction on Monday
Kotak Mahindra Bank opened the week with steady gains.
- ₹2,101.20 (+0.64%)
- ₹2,102.40 (+0.70%) during intraday
The stock managed to hold the ₹2,100 psychological level, supported by positive sentiment after Friday’s news flow.
Many traders expect improved liquidity post-split, especially in options trading, where lot-size affordability plays a major role. The move also aligns with Kotak’s long-term vision of strengthening market depth and widening its retail base.
Quick Corporate Action Snapshot
| Detail | Information |
|---|---|
| Corporate Action | Stock Split (Sub-Division) |
| Ratio | 1:5 |
| Face Value Change | ₹5 → ₹1 |
| Reason | Marking the 40th Foundation Day, improve retail participation |
| Market Price Today | ₹2,102.40 (approx.) |
| Previous Stock Split | 2010 |
| Record Date | To be announced |
| Approvals Required | Shareholders + Regulatory |
Why This Matters for Investors
Unlike bonus shares, which increase the number of shares without changing face value, a split reduces the face value but keeps ownership intact. Your total investment value remains unchanged immediately, but liquidity and affordability rise.
For example, if you held 10 shares at ₹2,100, post-split, you will hold 50 shares, each trading theoretically around ₹420 (subject to market movement).
Such splits often attract short-term volume spikes and improve long-term investor participation, especially from small retail investors.
Recent – Kotak Bank Board to Review Stock Split on Nov 21: What May Change for Investors
