Kotak Mahindra Bank Stock Split: Last Day To Buy Shares To Qualify Before Record Date
Kotak Mahindra will undergo its third stock split on Wednesday.
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Shares of Kotak Mahindra Bank Ltd. would be of market interest on Tuesday, Jan. 13, as it marks the last session for investors to buy shares to qualify for the stock split.
Kotak Mahindra will undergo its third stock split on Wednesday. The board approved the plan for the subdivision of each share in the ratio of 1:5 in November. Each Kotak Mahindra Bank share with a face value of Rs 5 will be split into five shares of Rs 1 face value on the ex-date which is Jan. 14. The stock split will enhance affordability, making it more accessible to retail investors.
The record date for Kotak Mahindra Bank stock split for the purpose of determining the eligible shareholders is also Jan. 14.
A stock split is a corporate action where a company increases the number of outstanding shares by reducing the face value per share. This typically enhances liquidity as the stock price adjusts accordingly. This implies that while the value of stocks that a shareholder has does not change, the number of shares they hold will increase.
To be eligible for a stock split, investors must hold shares as of the record date announced by the company. The record date determines who will receive additional shares post-split, based on the split ratio. With India following the T+1 settlement cycle, investors need to purchase the stock at least one trading day before the record date to be eligible.
Buying shares on the record date itself won’t qualify, as the ownership won’t be reflected in time during trade.
The stock split comes right after Kotak Mahindra Bank has confirmed the appointment of Anup Kumar Saha as Whole-time Director.
Until the appointment gets cleared by the regular, Saha will serve as the Designate Whole-time Director and a part of Senior Management, with effect from Jan 12, the lender confirmed through an exchange filing.
Anup Kumar Saha most recently served as the Managing Director of Bajaj Finance, spending eight years in the non-banking financial company (NBFC).
