Face Value Split: Kotak Mahindra AMC ETFs

Kotak Mahindra Asset Management Company Limited has announced a face value split (subdivision) for select Exchange Traded Funds (ETFs). This corporate action is aimed at improving liquidity and making ETF units more affordable and accessible to a wider set of investors.

The change will be effective from February 27, 2026.

Key Details

ETFs covered under this split

• Kotak Nifty Bank ETF (BANKNIFTY1)

• Kotak Nifty India Consumption ETF (CONS)

• Kotak Silver ETF (SILVER1)

• Kotak Nifty 50 Value 20 ETF (NV20)

• Kotak Nifty Midcap 50 ETF (MIDCAP)

What this means for investors

For existing unitholders, the face value split will result in a proportionate increase in the number of ETF units held. The market price per unit will adjust accordingly, ensuring that the total investment value remains unchanged.

In simple terms, the number of units in your demat account will increase, but the overall value of your holdings will remain the same immediately after the split.

Illustration

If you hold 100 units of any of the above ETFs with a face value of ₹10 each, after the split you will hold 1,000 units with a face value of ₹1 each. The market price will adjust proportionately.

There is no change in the intrinsic value of your investment — only the number of units increases.

Why ETF face value splits are announced

ETF splits are generally undertaken to:

• Improve trading liquidity

• Make units more affordable for retail investors

• Encourage wider market participation

• Enhance overall accessibility

Lower face value units are often perceived as more accessible, which can support higher trading activity.

Conclusion

The announced face value split for the above Kotak ETFs is expected to enhance liquidity and broaden investor participation. While this corporate action does not impact the intrinsic value of your holdings, it may contribute to improved trading volumes.