Kotak Mahindra Bank has decided to split its shares. Right now, 1 share will be divided into 5 smaller shares. This does not change the total value of what investors own, it just means each share will cost less, making it easier for more people (especially small investors) to buy and trade them.
They announced this decision while celebrating their 40th anniversary. The goal is to increase trading activity and make the stock more affordable for everyone. This is the bank’s first stock split in 15 years.
The record date (the cutoff date to qualify for the split) hasn’t been announced yet. It will also update the wording in its official documents so they match the new share structure after the split.
Also there is ongoing speculation in the market that Kotak Mahindra Bank might be interested in buying the government’s stake in IDBI Bank. While nothing has been confirmed yet, this possibility has caught the attention of investors and analysts, who are watching closely to see if Kotak decides to move forward with the deal.
Analysts have mostly neutral views on the stock, meaning they aren’t strongly positive or negative. Nomura has suggested holding the stock with a target price of ₹2,200. Nuvama set a target price of ₹2,082 and noted that the bank’s margins and asset quality were weaker compared to its peers. Before the announcement, the stock closed at Rs 2,085 on BSE.
The bank recently announced its quarterly results, reporting a profit of ₹3,253 crore, which was close to expectations. Its net interest income, the main income from lending, grew by 4%. The bank’s overall market value now stands at ₹4.14 lakh crore.
