Kotak Mahindra Bank on Friday said its board has approved a 5-for-1 stock split. In a stock exchange filing, the private sector lender said the board cleared the sub-division of one equity share of face value `5 each, fully paid-up, into five equity shares of face value `1 each, fully paid-up.
Boost to retail liquidity placement
The bank stated that the rationale behind the split was to make the bank’s equity shares more affordable and enhance their liquidity, thereby increasing market participation by investors, particularly individual investors. The lender had announced a subdivision of shares in a 1:2 ratio in 2010.
Regulatory approvals and timeline placement
The board approval is subject to approval from the bank’s members, the Reserve Bank of India (RBI), and other applicable regulatory authorities. The process is expected to be completed within two months of receiving all necessary clearances.
On Friday, the shares of the bank closed 0.6% lower at `2,086.50 on NSE.
