Kenya-based multimillionaire businessman Rohan Patel has earned $747,900 (KSh81.96 million) from his 30-million-unit stake in Sanlam Kenya Plc, as shares in the Nairobi-based group retreated from an all-time low price of KSh9.16 ($$0.08358).
Sanlam Kenya is an insurance, investment and retirement group based in Nairobi, Kenya.
The firm enjoys an estimated market share of six-percent in the Kenyan life insurance industry, serving more than 78,000 policyholders under individual life and over 235,000 under group life insurance.
It operates as a member of the Sanlam Group, a South African financial services group. Rohan Baloobhai Patel owns a majority stake of 29,913,267 ordinary shares in the group.
Patel’s $747,900 gain can be attributed to investor buying interest in the Kenyan subsidiary, which pushed the insurer’s share price up by nearly 30 percent in the last 75 days on the Nairobi Stock Exchange.
The market value of his stake has increased from KSh274.01 million ($2.50 million) on June 9 to KSh355.97 million ($3.25 million) on Aug. 23.
As of press time, 9:12 AM (UTC), Aug. 23, shares in the insurance group were trading at KSh11.90 ($0.1086) per share, 29.91-percent higher than its share price of KSh9.16 ($$0.08358) per share on June 9.
Despite posting a $2.66-million (KSh291.86 million) loss in the first half of 2021, buying pressure on the Nairobi-bourse has pushed the group’s share price near the 12-shilling mark ($0.1095) in recent times.
Before the recent price gains, the group’s shares had fallen from their opening price of KSh12.95 ($0.1182) on Jan. 4 to an all-time low of KSh9.16 ($$0.08358) on June 9, as wary investors offloaded stakes in the group.
Meanwhile, renewed buying interest in Sanlam Kenya in the past 75 days has seen the group’s shares surge by double digits, as value investors who believe the group’s shares are trading below their fair value acquire additional shares in the Kenya-based group.
Patel sits on the board of Sanlam Kenya as the Director of Corporate Development. He has been on the group’s board since May 2015.
In 2020, the businessman earned KSh2.88 million ($26,300) in director fees from the insurance group.