Kenyan multimillionaire businessman Suresh Bhagwanji Shah has encountered a notable downturn in the market value of his stake in I&M Bank Group, mirroring the significant drop in the financial institution’s share price on the Nairobi Securities Exchange.
According to data tracked by Billionaires.Africa, the market value of Shah’s stake in I&M has dipped by Ksh821.17 million ($6.2 million) in the past 17 days, driven by the recent downturn in the group’s shares on the local bourse.
This contrasts sharply with the $6.9 million profit he made between Feb. 14 and March 26 when the value of his I&M Bank Group stake soared from Ksh3.1 billion ($23.47 million) to Ksh4.02 billion ($30.43 million).
I&M Bank’s share price decline
I&M Holdings, the Nairobi-based parent company of I&M Bank Limited, was founded by Shah in 1974. I&M Group, the non-operating holding company, is a leading financial services group with operations in Kenya, Tanzania, and Rwanda, as well as a joint venture in Mauritius.
In a recent announcement, I&M Bank outlined a three-year plan to double its physical presence by establishing 100 branches by the end of 2026. This ambitious target necessitates an aggressive expansion strategy, with the bank aiming to open at least 17 new branches annually. Currently, I&M Bank boasts a network of 50 branches spread across Kenya.
However, I&M Bank’s share price on the Nairobi Securities Exchange has slumped 20.8 percent, falling from Ksh22.1 ($0.1659) on April 2 to Ksh17.5 ($0.1314). This decline pushed its market capitalization below $250 million, resulting in substantial shareholder losses.
Shah’s I&M investment takes $6.2-million hit
Shah, credited with transforming I&M into one of East Africa’s leading banking groups, holds a beneficial 10.98 percent stake in the top-performing financial services provider. This translates to 178,514,362 ordinary shares.
The market value of Shah’s stake in I&M Bank has declined by Ksh821.17 million ($6.2 million) over the past 17 days due to a recent slump in the lender’s shares.
The value fell from Ksh3.95 billion ($29.62 million) on April 2 to Ksh3.12 billion ($23.46 million) at the time of writing. Despite this, Shah remains one of the most affluent investors on the Nairobi Securities Exchange.
