Kenyan banking tycoon Suresh Bhagwanji Raja Shah has lost $3.99 million (Ksh431.11 million) on the back of a decline in the market value of his stake in I&M Holdings Plc.
The decline occurred as investors sold down the bank’s shares, leading to a double-digit dip in the share price.
I&M Holdings, formerly known as City Trust Limited, is the Kenya-based non-operating holding company for I&M Bank Limited.
The bank operates through its banking subsidiaries in Kenya, Tanzania, Rwanda and a joint venture in Mauritius under the holding.
To expand its operational footprint to other countries in the region, the bank disclosed in May that it completed the acquisition of a 90-percent stake in the Ugandan bank, Orient Bank Limited.
Despite the announcement and resilient Q1 results, shares in the financial services provider have seen an 18-percent dip in value since March 31.
As of press time, 1:30 PM (UTC), July 15, shares in I&M Holdings were trading at $0.1992 (Ksh21.55), four-percent lower than its opening price of $0.2080 (Ksh22.50).
The price of the bank’s shares on the Nairobi bourse has dropped from $0.2439 (Ksh26.38) on March 31 to $0.1992 (Ksh21.55) as of press time, translating to an 18-percent loss for shareholders.
Shah, the founder and former chairman of I&M Bank, is the single largest individual shareholder of the tier-1 lender, with a 10.8-percent ownership stake of 89,257,181 ordinary shares.
Research by Billionaires.Africa revealed that the value of his stake decreased from $21.75 million (Ksh2.35 billion) on March 31 to $17.78 million (Ksh1.92 billion).
This translates to a loss of $3.99 million (Ksh431.11 million) for the banking tycoon.