Kotak Mahindra Bank is considering a split of its equity shares. In an exchange filing, the bank stated that the board of directors is meeting on November 21 to consider the proposal.
The bank’s equity shares currently have a face value of Rs 5 each. The company had earlier carried out a stock split and issued bonus shares to its shareholders. The bank said the record date for the share split is yet to be determined.
Earlier in 2010, Kotak Mahindra Bank carried out a share split, reducing the face value of equity shares from Rs 10 to Rs 5. In 2015, the bank also issued bonus shares in a 1:1 ratio.
What is share split?
A share split is a corporate procedure where the company issue new shares to increase the number of shares held by the shareholders. The action does not affect the total value of the shares held by the shareholders.
The share split increases the trading liquidity of the stocks, making more shares available and affordable to trade.