Malawian businessman Ramesh Sawajani has gained MWK2.7 billion ($3.4 million) from his stake in Illovo Sugar, Malawi’s best performing stock accrues a triple-digit gain for investors in just 96 days.
The multimillion-dollar profit from his stake can be attributed to a surge in the share price of the company, as investors expect Illovo Sugar Malawi to deliver improved financial performance in the first half of 2021 and throughout the year as consumer demand strengthens following the disruption occasioned by the COVID-19 pandemic.
As of press time, 2:55 PM (UTC), Sept. 21, shares in the sugar company were trading at MWK265.50 ($0.3268) on the Malawi Stock Exchange.
Research conducted by Billionaires.Africa revealed that the company’s stock price between June 17 and Sept. 21 increased from MWK80.47 ($0.0991) to MWK265.50 ($0.3268) on the local bourse.
This translates to a gain of 230 percent for Illovo Sugar shareholders.
Meanwhile, Savjani, who owns a 2.08-percent stake in the sugar company, has seen the market value of his shares increase by $3.4 million in just about three months.
The market value of his stake has increased from MWK1.2 billion ($1.5 million) on June 17 to MWK3.9 billion ($4.8 million) at the time of drafting this report.
Sajvani is the chairman of the General Alliance insurance company in Malawi. The current valuation of his stake in Illovo Sugar makes him the second wealthiest investor on the Malawi Stock Exchange behind Hitesh Anadkat, the founder of FMB Capital Holdings.
Illovo Sugar is one of two sugar producers with active operations in Malawi. The company operates as a subsidiary of Illovo Sugar Africa, Africa’s largest sugar producer.
It annually cultivates around 1.8 million tonnes of cane, and produces about 250,000 tonnes of sugar per annum.
The recent surge in its share price can be linked to investor expectation of improved financial results following a notification that the company expects its half-year profit to increase by at least 60 percent from the previous year’s figures.
