Kotak Mahindra stock split: Bank announces 1:5 share split; aims to boost liquidity- what you need to know
Under the proposal, one existing equity share of face value Rs 5 will be split into five shares of face value Rs 1 each, fully paid-up.
The lender last conducted a stock split in 2010, when it subdivided shares in a 1:2 ratio, PTI reported.Commenting on the decision, the bank’s part-time chairman CS Rajan said, “As we celebrate 40 years of our journey, we reaffirm our commitment to creating long-term value for our shareholders.
This milestone is not just a reflection of our legacy, but a Kotak for the future.”He added that the move is intended to encourage broader investor participation by making equity shares “more affordable and liquid”.Managing Director and CEO Ashok Vaswani said, “Forty years ago, we began a journey rooted in trust and innovation.
Today, as we celebrate this remarkable milestone, we also look ahead with a renewed ambition.
The decision to implement a stock split echoes our commitment to inclusivity, so that more investors can join us in the Kotak growth story.”The board also approved amendments to the capital clause of the Memorandum of Association to reflect the revised share structure post-split.
The change will take effect after necessary approvals from shareholders, the Reserve Bank of India, and other regulatory authorities.The process is expected to be completed within two months of receiving all clearances.
Shares of Kotak Mahindra Bank closed 0.51% lower at Rs 2,086.50 apiece on the BSE on Friday.
