Last chance to buy Kotak Bank shares before 5:1 split
What's the story
Kotak Mahindra Bank is splitting its shares in a 5:1 ratio. The record date for this corporate action is set as January 14, 2026. This means that investors looking to benefit from the stock split must buy the shares by the end of trading today. As part of the upcoming split, a single equity share with a face value of ₹5 will be divided into five equity shares with a face value of ₹1 each.
Past split
Kotak Mahindra's previous stock split and current changes
This is the second time Kotak Mahindra Bank is splitting its shares. The last time it happened was in September 2010, when the face value of shares was reduced from ₹10 to ₹5. A stock split is beneficial because it makes shares more affordable, improves liquidity, attracts more retail investors, and often increases trading activity, without changing the company's overall value or an investor's total holding.
Shareholder effect
Impact of stock split on shareholders
For existing shareholders, the 5:1 stock split means that their current shares will be multiplied by five. So, if a shareholder had 50 shares before the split, they would now have 250 shares after it. However, the total value of their investment would remain unchanged as the market price per share would adjust accordingly to reflect this change in quantity and face value.