Kotak Mahindra Bank shares

#1
Hi All,

I was an investor in Indian primary share market during the period between 1987-1994. My investment was primarily in the NRI quota of public offers of shares. I was at that time working in Bahrain in the Arabian Gulf. After 1994 I withdrew from investing, but still hold a good number of those shares. Currently I live in Australia.

One of the shares I hold is Kotak Mahindra Bank. In recent days the share price of this suddenly halved. I heard about the merger of Kotak and Vysya Bank. Whatever that means, does it mean that I lost half of the value of the Kotak Mahindra Bank shares? I am confused. Can someone explain what it means and what I should expect with my shares?
 

TradeOptions

Well-Known Member
#2
Hi All,

I was an investor in Indian primary share market during the period between 1987-1994. My investment was primarily in the NRI quota of public offers of shares. I was at that time working in Bahrain in the Arabian Gulf. After 1994 I withdrew from investing, but still hold a good number of those shares. Currently I live in Australia.

One of the shares I hold is Kotak Mahindra Bank. In recent days the share price of this suddenly halved. I heard about the merger of Kotak and Vysya Bank. Whatever that means, does it mean that I lost half of the value of the Kotak Mahindra Bank shares? I am confused. Can someone explain what it means and what I should expect with my shares?
Hi

You need not worry about the fact that the stock price has got suddenly halved, because that has happened due to Bonus Ratio of 1:1. The last bonus that Kotak Mahindra Bank had announced was in 2015 in the ratio of 1:1.The share has been quoting ex-bonus from July 8, 2015.

The total money value of your holding will not get halved because of this and it will continue to remain the same, as the number of shares will get doubled in your account.

http://www.moneycontrol.com/company...nk/bonus/KMB#KMB?utm_source=IW_DATA_stockpage

Also checkout the following article

http://www.moneycontrol.com/news/bu...k-mahindra-bank-rbi-okays-merger_1347132.html

With Regards
 

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