In a significant move for its shareholders, Kotak Mahindra Bank has officially announced the record date for its long-awaited stock subdivision. The private sector lender has set January 14, 2026, as the 'Record Date' to determine which equity shareholders are eligible for the split. This marks the bank's first stock split in fifteen years, a move aimed at enhancing liquidity and making shares more accessible to a broader investor base.
Eligibility and Key Details for Shareholders
The eligibility for the stock split is clear-cut. Investors holding the bank's shares in their demat accounts at the close of the trading session on Tuesday, January 13, 2026, will be entitled to receive the subdivided shares. Conversely, anyone purchasing Kotak Bank shares on or after Wednesday, January 14, will buy them in their post-split form and will not be eligible for the subdivision. The bank made this formal announcement via an exchange filing, citing compliance with SEBI's Listing Obligations and Disclosure Requirements regulations.
Understanding the 1:5 Stock Split Mechanics
The split, initially approved in November 2025, will be executed in a 1:5 ratio. This means each existing equity share of the bank, which currently has a face value of ₹5, will be subdivided into five new equity shares. Post-split, each new share will have a face value of ₹1. It is crucial for investors to understand that a stock split does not alter the fundamental value of their investment or the bank's overall market capitalisation. It simply increases the number of shares in circulation while proportionally reducing the price per share, making individual shares more affordable.
This is only the second stock split in the history of Kotak Mahindra Bank. The previous subdivision occurred back in 2010 when the bank split shares from a face value of ₹10 to ₹5. Companies typically undertake such splits to improve liquidity and encourage wider participation from retail investors.
Share Price Performance and Market Context
On the trading front, Kotak Mahindra Bank's stock showed minimal movement following the record date announcement. In recent sessions, the share price has traded within a narrow range. The stock touched a 52-week high of ₹2,301.55 on April 22 and a 52-week low of ₹1,711.05 on January 14 of this year. Over a longer horizon, the banking stock has delivered robust returns, posting a 23% gain over the past year, significantly outperforming its near-term flat trend.
Analysts often view stock splits as a sign of management's confidence in the future prospects of the company, believing the stock price will remain attractive to investors. For Kotak Mahindra Bank, this strategic move could potentially attract a new segment of retail investors who may have found the pre-split price point a barrier to entry.
