Kotak Mahindra Bank announced a significant corporate action on 21 November 2025, coinciding with its 40th Foundation Day. The Board of Directors has approved a sub-division of the bank’s equity shares in a 1:5 ratio, a move aimed at improving market liquidity and enhancing retail investor participation.
Under the approved structure, one existing equity share with a face value of ₹5 will be split into five equity shares with a face value of ₹1 each. While the number of shares will increase substantially post-split, the total paid-up share capital of the bank will remain unchanged. The decision also includes an amendment to the Capital Clause of the bank’s Memorandum of Association to reflect the revised share structure.
Before the split, Kotak Mahindra Bank’s authorised equity share capital stood at 280 crore shares of ₹5 each, aggregating to ₹1,400 crore. After the split, the authorised capital will comprise 1,400 crore shares with a face value of ₹1 each, while maintaining the same total capital. The issued, subscribed, and paid-up capital will also remain constant at ₹994.37 crore, distributed across a larger number of equity shares. The final count may vary depending on the exercise of employee stock options.
The bank stated that the rationale behind the stock split is to make its equity shares more affordable and improve liquidity on the exchanges, thereby increasing participation from retail and individual investors. The move is expected to support broader market access and enhance the stock’s tradability.
