Malawian multimillionaire tycoon Hitesh Anadkat has gained MWK1.09 billion ($1.34 million) in the past 15 days from his stake in Telekom Networks Malawi (TNM), as shares in the company surge by double digits.
The million-dollar gain in his stake can be attributed to swift investor reactions after the telecom company’s half-year earnings were published.
TNM is the pioneer telecommunications company in Malawi. The company was established in 1995 as a joint venture between Telekom Malaysia Berhad and the then-government-owned Malawi Postal and Telecommunications Corporations.
The telecom company currently operates as a subsidiary of Press Corporation Limited, the largest business conglomerate in Malawi, following a 60-percent stake sell-off in 2007 by Telekom Malaysia to MTL Mobile, an investment vehicle created by Press Corporation.
Anadkat, a serial investor, holds a substantial stake of 435,000,000 shares in the company.
During the half-year period ending on June 30, TNM reported that its net profit after taxation increased by 19 percent from MWK3.78 billion ($4.65 million) in the first half of 2020 to MK4.51 billion ($5.55 million).
The cost-containment initiatives deployed by the management, a 14-percent growth in data revenue and a 54-percent surge in mobile money revenue spurred the company’s double-digit increase in profit.
This solid financial performance led investors to acquire additional shares in TNM, which led, in turn, to the double-digit surge in the company’s share price.
As of press time, 4:07 PM (UTC), Sept. 14, shares in the company were worth MWK18.01 ($0.0222), 16.2-percent higher than its price of MWK15.50 ($0.0191) on Aug. 30, 15 days ago.
Research conducted by Billionaires.Africa revealed that the value of Anadkat’s stake in TNM has increased from MWk6.74 billion ($8.30 million) on Aug. 30 to MWK7.83 billion ($9.64 million).
This translates to a gain of MWK1.09 billion ($1.34 million) for the multimillionaire in 15 days.
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.