Why Kotak Mahindra Bank Shares Appeared to Crash 80% Today

Kotak Mahindra Bank shares appeared to plunge more than 80% in early trade on Wednesday. The lender’s shares, which closed at around ₹2,130 on Tuesday, began Wednesday’s session at about ₹423 apiece on the BSE. However, the sharp decline was purely technical and not linked to any deterioration in the bank’s fundamentals.

The fall followed the bank’s 5:1 stock split, under which each share with a face value of ₹5 was subdivided into five shares of ₹1 each. January 14 was set as the record date to determine eligible shareholders and the stock began trading ex-split on the same day.

As a result of the subdivision, the number of outstanding shares increased fivefold, while the face value and market price adjusted proportionately. This price adjustment does not affect the company’s market capitalisation or investor wealth.

For instance, an investor holding 50 shares before the split now owns 250 shares, with the share price adjusted accordingly, keeping the overall investment value unchanged.

On the BSE, at market close, the private lender’s shares were down just 1.27% at ₹421.

On a split-adjusted basis, Kotak Mahindra Bank shares continue to trade well within their recent range, with a 52-week low of around ₹346 and a high close to ₹460. Adjusted for the split, the bank’s market capitalisation stands at about ₹83,500 crore, while the stock has gained over 9% over the past one year.

This is not the first instance of a stock split by the lender. On January 14, 2026, the face value of the share was reduced from ₹5 to ₹1 through a 5:1 split. Earlier, on September 13, 2010, the bank had cut the face value from ₹10 to ₹5 in a 2:1 split.

In both cases, the move was aimed at improving trading liquidity and expanding retail investor participation, without altering the company’s fundamental valuation.