Kotak Mahindra Bank announces stock split in 1:5 ratio

New Delhi, Nov 21 (PTI) Private sector lender Kotak Mahindra Bank on Friday said its board has approved a sub-division (stock split) of equity shares in a 1:5 ratio to improve liquidity and affordability.

The board, on the occasion of the bank’s 40th foundation day, has approved the sub-division of one existing equity share of the bank having a face value of Rs 5 each, into equity shares having a face value of Rs 1 each, fully paid-up, Kotak Mahindra Bank said in a regulatory filing.

This move aims to make Kotak’s equity shares more affordable and enhance liquidity, thereby encouraging wider market participation, particularly among retail investors, it added.

The stock split is subject to regulatory and statutory approvals, it said.

Commenting on the board 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".

On this momentous occasion, to encourage wider investor participation by making the bank’s equity shares more affordable and liquid, the board has, subject to regulatory and statutory approvals, decided to subdivide the existing equity shares of face value of Rs 5 each into equity shares of a smaller denomination of Rs 1 each, he said.

Ashok Vaswani, Managing Director and CEO, Kotak Mahindra Bank, 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".

Consequently, the board has also approved an amendment to the capital clause of the Memorandum of Association of the Bank to reflect the revised share structure, post-split.

These approvals are subject to consent from the bank’s members, the Reserve Bank of India (RBI), and other applicable regulatory authorities, it said.

The process is expected to be completed within two months of receiving all necessary clearances, it added.

Shares of the lender closed 0.51 per cent lower at 2,086.50 apiece on BSE on Friday. PTI DP DP BAL BAL