Indian angel investor and Unbound Founder Shravin Mittal has lost $101.78 million in 76 days from his stake in Airtel Africa Plc. The loss occurred as investors reprice the shares of the telecom service provider after new SIM registration regulations were introduced in Nigeria, its most profitable market.
Airtel Africa is a leading telecom and mobile money services provider in Africa. It has a presence in 14 countries on the continent, primarily in East and Central and West Africa.
As of press time, 4:30 PM (UTC), July 15, the company’s shares were trading at $1.462 (N601.00), 29-percent lower than its opening price of $2.0705 (N851.00) for the year.
At the current price, its market capitalization is $5.50 billion (N2.26 trillion), making the pan-African telecom operator the fourth most capitalized company on the Nigerian Stock Exchange (NXG).
Following the introduction of Nigeria’s new SIM regulations, the company’s share price declined from $2.2627 (N930.00) on April 30 to $1.462 (N601.00) as of press time on the NXG. This translates to a 35-percent loss for the shareholder in 76 days.
The decline in the telecom provider’s share price can be linked to the repricing of shares, as financial analysts and investors price in the recent slowdown in customer base growth.
With a customer base of 118.2 million subscribers, Airtel is a leading telecom service provider in Africa and the second largest in Nigeria, Africa’s wealthiest nation in terms of GDP.
Mittal, a director in Airtel Africa and the son of Sunil Bharti Mittal, the founder of Bharti Airtel, the parent company of Airtel Africa, holds an indirect stake of 127,147,531 ordinary shares in the company.
Research conducted by Billionaires.Africa revealed that the market value of his stake has declined by a staggering $101.78 million (N41.83 billion) in 76 days.
The value of his stake in the leading telecom service provider has declined from $287.70 million (N118.25 billion) on April 30 to $185.92 million (N76.42 billion) today, July 15.
Mittal currently ranks seventh on Billionaires.Africa’s list of the richest investors on the NXG. He moved one spot on the list after Greek industrialist John Coumantaros replaced him.
Coumantaros’ stake in Flour Mills of Nigeria Plc is valued at $189 million.