Kotak Mahindra Bank Stock Split: Why 80% 'Crash' is Optical, Not a Sell-off

• Kotak Mahindra Bank shares appeared to fall over 80% on January 14 due to a 5:1 stock split, not a market crash.
• The face value of shares was reduced from Rs 5 to Re 1, with one existing share becoming five new shares.
• The dramatic fall is an optical adjustment on platforms not automatically updating historical prices for the split.
• Post-split, the stock was trading around Rs 419-420, down about 1.6% on the day, with market cap around Rs 83,500 crore.
• The split aims to improve liquidity and affordability for retail investors; total investment value for shareholders remains unchanged.

Why It Matters: Kotak Mahindra Bank's 80% stock 'crash' is an optical illusion from a 5:1 split, not a real fall.