Kolhapur is situated in the southwest region of India between Goa and Mumbai. It was dominated by Marathas and came under the Deccan Division of Bombay Presidency. Later, its name was changed to the Deccan States Agency in British India. The flag of the state had a swallow-tailed orange pennant.
The Maharajas of Kolhapur traced their origin from Raja Ram, the son of Shivaji, the founder of Maratha Kingdom. After the death of Raja Ram in the year 1698, his son Shivaji II ascended to the throne and his mother Tarabai was made regent. Kolhapur became a separate state in around 1730 when a family quarrel left Sambhaji II, the grandson of Shivaji, as a first Raja of Kolhapur. Between 1811 and 1862, Kolhapur concluded a series of treaties and agreements with the British Empire.
This half rupee was issued from Kolhapur in the name of Muhammad Shah.