Malawian tycoon Hitesh Anadkat lost $2.18 million from Telekom Networks Malawi this year
Shares in Telekom Networks Malawi have declined by double digits since the start of the year, leading to a loss of $2.18 million (MWK1.77 billion) for its largest shareholder, Hitesh Anadkat.
Telekom Networks Malawi is the oldest telecom company in Malawi and a subsidiary of Press Corporation Limited, the country’s largest business conglomerate.
As of press time, 2:26 PM (UTC), Aug. 17, shares in the leading telecom operator were trading at MWK16.00 ($0.01970) per share on the Malawi Stock Exchange, 20.28-percent lower than its opening price of MWK20.07 ($0.02471) per share.
Malawian multimillionaire and serial investor Hitesh Anadkat holds a substantial stake of 435,000,000 shares in the company.
Aside from his stake in Telekom Networks Malawi, the multimillionaire businessman holds a beneficial interest in Letshego Holdings and Malawi’s first bank, FMB Capital Holdings Plc.
The market value of his stake in the Malawi-based telecom service provider has lost more than $2 million since the year started, as shares in the company plunged by 20.28 percent in reaction to a sell-off of its shares on the Malawian bourse.
Data compiled by Billionaires.Africa revealed that the market value of his stake has declined from MWK8.73 billion ($10.75 million) to MWK6.96 billion ($8.57 million) between Dec. 31, 2020 and Aug. 17, 2021.
This translates to a loss of MWK1.77 billion ($2.18 million) since the start of the year.
The loss accrued from Anadkat’s stake came off the back of a sustained decline in the company’s shares, as investors sold off stakes in the Malawi-based telecom provider.
The recent sell-off in shares can be attributed to a 41-percent plunge in the company’s net profit at the end of the 2020 financial year.
The fall in its earnings in 2020 was spurred by a decline in customer affinity and a drop in competitive pricing, which saw its revenue decline by six percent.