Description

Kotak Mahindra Bank's equity shares face value will be split from Rs. 5 to Re. 1, effective January 14, 2026.

Summary

National Stock Exchange of India has announced that Kotak Mahindra Bank Limited (KOTAKBANK) will undergo a face value split of its equity shares. The face value and paid-up value will be reduced from Rs. 5 to Re. 1, representing a 5:1 stock split ratio. This corporate action will be effective from January 14, 2026.

Key Points

  • Company: Kotak Mahindra Bank Limited
  • Stock Symbol: KOTAKBANK
  • Existing Face Value: Rs. 5
  • New Face Value: Re. 1
  • Split Ratio: 5:1 (each existing share will become 5 shares)
  • Effective Date: January 14, 2026
  • Circular issued by NSE Listing Department

Regulatory Changes

No regulatory framework changes. This is a corporate action approved by the company and notified by the exchange.

Compliance Requirements

  • All NSE members must note the face value change in their systems
  • Trading systems must be updated to reflect the new face value from January 14, 2026
  • Existing shareholders will receive proportionally adjusted number of shares (5 shares for every 1 share held)
  • Market price per share will adjust proportionally to maintain market capitalization

Important Dates

  • Circular Date: December 30, 2025
  • Effective Date: January 14, 2026

Impact Assessment

Market Impact: High. Face value splits typically improve liquidity by making shares more affordable to retail investors. The lower price per share (approximately 1/5th of current price) may attract more participants and increase trading volumes.

Shareholder Impact: Neutral in value terms. While shareholders will hold 5 times more shares, the total value of their holdings remains unchanged. However, improved liquidity and affordability may positively impact future price discovery.

Operational Impact: Medium. Brokers, depositories, and trading systems need to update records and ensure smooth transition on the effective date.

Impact Justification

Face value split of a major banking stock affects share pricing, liquidity, and investor holdings. High importance due to KOTAKBANK's market significance.