Kotak Mahindra Bank shares: Why the lender is showing up to 80% in some trading apps today
Kotak Mahindra Bank shares stock split: Mutlibagger private lender Kotak Mahindra Bank might be showing up to 80 per cent fall in some trading apps today.
- Jan 14, 2026,
- Updated Jan 14, 2026 9:42 AM IST
Kotak Bank shares stock split: Mutlibagger private lender Kotak Mahindra Bank might be showing up to 80 per cent fall in some trading apps today as all these the shares turned ex-split, adjusting to the pre-announced corporate action. Kotak Mahindra Bank had announced to issue subdivided stocks for the eligible shareholders in 1:5 ratio, which is indicating a sharp downside in its price.
It means all the shares of Kotak Bank, with a face value of Rs 5 each, shall be split or subdivided into five shares with face value of Re 1 each as of today. Investors having Kotak Mahindra Bank shares in their demat account shall be eligible for this corporate action and the stock price shall be adjusted in the same ratio, that is, 1:5. From today, subdivided or adjusted shares shall be traded.
Kotak Mahindra Bank had announced the stock split on November 21, 2025, its 40th foundation day, to make shares more affordable and enhance liquidity, thereby encouraging wider market participation, particularly among retail investors. The bank had fixed Wednesday, January 14, 2026 as the record date to determine the eligible equity shareholders, it said in the filings.
Shares of Kotak Mahindra Bank opened at Rs 425.05 on Friday, signaling a nearly 80 per cent fall from its previous close at Rs 2,132 on Tuesday. The total market capitalization of the company stood close to Rs 4.21 lakh crore mark. The indicated fall was due to the 'subdivision' of its equity shares in 1:5 ratio. However, the stock was seen at Rs 423.50 in early trade, marginally down.
An existing Kotak Mahindra Bank Ltd investor holding one share would receive four additional shares, taking the holding to five. The corporate action would trigger a sharp price adjustment on the counter, as the stock split converts one share into five. The corporate action would improve liquidity and affordability.
Tuesday, January 13 was the last day to buy Kotak Mahindra Bank shares to become eligible for the aforesaid corporate actions as Friday marks the record date for it. The stock is under the 'T+1' settlement cycle. The record date determines the eligibility of shareholders for the corporate action. The move aims to increase stock liquidity and affordability for retail investors.
What makes stock splits attractive for investors is that they come free of cost. The impact of a bonus issue is straightforward: it increases the number of shares in circulation, which trims down the company’s free reserves and lowers earnings per share (EPS). As a result, the stock price adjusts downward. There is, however, no dilution of equity.
The company board of Kotak Mahindra Bank is set to meet on January 24, Saturday to consider and approve the standalone and consolidated unaudited financial results for the quarter and nine months ended December 31, 2025, along with the limited review report of the joint statutory auditors on the same.
Over the past couple of years, Kotak Mahindra Bank has been hampered by stress in its retail unsecured segments, a 10-month embargo owing to deficiencies in IT controls/systems and multiple senior management exits. The bank continues to gain market share in RoA accretive medium yielding segments, said HDFC Securities.
"It has navigated these issues by improving the quality of deposits, making significant technology investments, reducing exposure and tightening underwriting in the unsecured segments, and filling in the senior management gaps largely by in-house talent. We believe that KMB shall continue to deliver healthy growth," it said with a target price of Rs 2,500 on pre-split adjustment.
Kotak Mahindra Bank witnessed near-term NIM volatility and elevated credit costs earlier in FY26; however, operating performance is expected to normalize as funding-cost repricing plays out and unsecured stress subsides. Subsidiaries continue to provide structural earnings diversification, supporting consolidated profitability over the medium term, said Motilal Oswal.
"Disciplined execution, strong liability franchise, and capital strength underpin confidence in sustainable RoA of over 2 per cent. We thus estimate it to deliver robust return ratios, with RoA/RoE at 2 per cent/12.7 per cent by FY27E," it added and retained 'buy' with target of Rs 2,500 on a pre-split adjusted basis. Post split, the target price comes out to be Rs 500.
To recall, MCX, Ajmera Realty, Caspian Corporate Services, Nuvama Wealth Management Mrs Bectors Food Specialities, Bharat Rasayan, BEML, Fineotex Chemicals, Adani Power, Zydus Wellness, Rolex Rings, Tata Investment Corporation and Paras Defence are among the dozens of stocks that have undergone splits in recent months.
Kotak Bank shares stock split: Mutlibagger private lender Kotak Mahindra Bank might be showing up to 80 per cent fall in some trading apps today as all these the shares turned ex-split, adjusting to the pre-announced corporate action. Kotak Mahindra Bank had announced to issue subdivided stocks for the eligible shareholders in 1:5 ratio, which is indicating a sharp downside in its price.
It means all the shares of Kotak Bank, with a face value of Rs 5 each, shall be split or subdivided into five shares with face value of Re 1 each as of today. Investors having Kotak Mahindra Bank shares in their demat account shall be eligible for this corporate action and the stock price shall be adjusted in the same ratio, that is, 1:5. From today, subdivided or adjusted shares shall be traded.
Kotak Mahindra Bank had announced the stock split on November 21, 2025, its 40th foundation day, to make shares more affordable and enhance liquidity, thereby encouraging wider market participation, particularly among retail investors. The bank had fixed Wednesday, January 14, 2026 as the record date to determine the eligible equity shareholders, it said in the filings.
Shares of Kotak Mahindra Bank opened at Rs 425.05 on Friday, signaling a nearly 80 per cent fall from its previous close at Rs 2,132 on Tuesday. The total market capitalization of the company stood close to Rs 4.21 lakh crore mark. The indicated fall was due to the 'subdivision' of its equity shares in 1:5 ratio. However, the stock was seen at Rs 423.50 in early trade, marginally down.
An existing Kotak Mahindra Bank Ltd investor holding one share would receive four additional shares, taking the holding to five. The corporate action would trigger a sharp price adjustment on the counter, as the stock split converts one share into five. The corporate action would improve liquidity and affordability.
Tuesday, January 13 was the last day to buy Kotak Mahindra Bank shares to become eligible for the aforesaid corporate actions as Friday marks the record date for it. The stock is under the 'T+1' settlement cycle. The record date determines the eligibility of shareholders for the corporate action. The move aims to increase stock liquidity and affordability for retail investors.
What makes stock splits attractive for investors is that they come free of cost. The impact of a bonus issue is straightforward: it increases the number of shares in circulation, which trims down the company’s free reserves and lowers earnings per share (EPS). As a result, the stock price adjusts downward. There is, however, no dilution of equity.
The company board of Kotak Mahindra Bank is set to meet on January 24, Saturday to consider and approve the standalone and consolidated unaudited financial results for the quarter and nine months ended December 31, 2025, along with the limited review report of the joint statutory auditors on the same.
Over the past couple of years, Kotak Mahindra Bank has been hampered by stress in its retail unsecured segments, a 10-month embargo owing to deficiencies in IT controls/systems and multiple senior management exits. The bank continues to gain market share in RoA accretive medium yielding segments, said HDFC Securities.
"It has navigated these issues by improving the quality of deposits, making significant technology investments, reducing exposure and tightening underwriting in the unsecured segments, and filling in the senior management gaps largely by in-house talent. We believe that KMB shall continue to deliver healthy growth," it said with a target price of Rs 2,500 on pre-split adjustment.
Kotak Mahindra Bank witnessed near-term NIM volatility and elevated credit costs earlier in FY26; however, operating performance is expected to normalize as funding-cost repricing plays out and unsecured stress subsides. Subsidiaries continue to provide structural earnings diversification, supporting consolidated profitability over the medium term, said Motilal Oswal.
"Disciplined execution, strong liability franchise, and capital strength underpin confidence in sustainable RoA of over 2 per cent. We thus estimate it to deliver robust return ratios, with RoA/RoE at 2 per cent/12.7 per cent by FY27E," it added and retained 'buy' with target of Rs 2,500 on a pre-split adjusted basis. Post split, the target price comes out to be Rs 500.
To recall, MCX, Ajmera Realty, Caspian Corporate Services, Nuvama Wealth Management Mrs Bectors Food Specialities, Bharat Rasayan, BEML, Fineotex Chemicals, Adani Power, Zydus Wellness, Rolex Rings, Tata Investment Corporation and Paras Defence are among the dozens of stocks that have undergone splits in recent months.