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Shares of Kotak Mahindra Bank Ltd
. fell on Wednesday, January 14, as the lender began trading adjusted for its stock split announced earlier.
Kotak Mahindra Bank has divided one share of ₹5 into five shares of ₹1 each. Record date for the stock split was fixed for January 14.
This means, those shareholders, who had shares of Kotak Mahindra Bank in their demat accounts as of Tuesday's closing, will be eligible for the stock split. Those who buy shares of the bank today, will be buying the shares post-adjustment.
For example, as of Tuesday's close, if an investor had 100 shares of Kotak Bank of face value of ₹5 each, the stock split will mean those 100 shares get converted to 500 shares (1:5 ratio) of face value of ₹1 each. The value of those shares will remain the same as the stock price adjusts in proportion to the split ratio.
This is the second instance of Kotak Mahindra Bank carrying out a stock split for its investors after 2010, when it had split one share of ₹10 into two shares of ₹5 each. Later in 2015, the lender also went on to issue bonus shares in the 1:1 ratio, meaning shareholders back then had received one free share for every one share held as on the record date.
Kotak Mahindra Bank will be announcing its third quarter results on Saturday, January 24. Along with its results, the lender will also be considering a proposal to raise funds through non-convertible debentures (NCDs).
Shares of Kotak Mahindra Bank are trading 0.6% lower on Wednesday at ₹424.1. The stock has risen 22% in the last one month.
Kotak Mahindra Bank has divided one share of ₹5 into five shares of ₹1 each. Record date for the stock split was fixed for January 14.
This means, those shareholders, who had shares of Kotak Mahindra Bank in their demat accounts as of Tuesday's closing, will be eligible for the stock split. Those who buy shares of the bank today, will be buying the shares post-adjustment.
For example, as of Tuesday's close, if an investor had 100 shares of Kotak Bank of face value of ₹5 each, the stock split will mean those 100 shares get converted to 500 shares (1:5 ratio) of face value of ₹1 each. The value of those shares will remain the same as the stock price adjusts in proportion to the split ratio.
This is the second instance of Kotak Mahindra Bank carrying out a stock split for its investors after 2010, when it had split one share of ₹10 into two shares of ₹5 each. Later in 2015, the lender also went on to issue bonus shares in the 1:1 ratio, meaning shareholders back then had received one free share for every one share held as on the record date.
Kotak Mahindra Bank will be announcing its third quarter results on Saturday, January 24. Along with its results, the lender will also be considering a proposal to raise funds through non-convertible debentures (NCDs).
Shares of Kotak Mahindra Bank are trading 0.6% lower on Wednesday at ₹424.1. The stock has risen 22% in the last one month.
