Investor Baloobhai Patel increases stake in Co-op Bank with $1.6-million investment

Oluwatosin Racheal Alabi -

Key Points

  • Multimillionaire Baloobhai Patel invested Ksh216.5 million ($1.6 million) to raise his Co-op Bank stake to 1.55%.
  • Patel may earn nearly Ksh140 million ($1 million) in dividends if Co-op Bank maintains last year’s rate.
  • Patel’s portfolio includes stakes in Absa Bank Kenya, Bamburi Cement, and other top NSE companies.

Multimillionaire investor Baloobhai Patel, a highly influential but low-profile figure on the Nairobi Securities Exchange (NSE), has expanded his investment in Co-operative Bank of Kenya (Co-op Bank). Patel, known for his equity investments, added Ksh216.5 million ($1.6 million) worth of shares to his portfolio, raising his ownership in the bank to 1.55 percent. This makes him the second-largest individual shareholder in Co-op Bank, trailing only CEO Gideon Muriuki, who holds a two-percent stake.

Potential returns on a growing investment

Co-op Bank’s recent filing with the Capital Markets Authority (CMA) revealed that Patel and his wife, Amarjeet Patel, purchased 15.25 million shares between February and August 2024. At the current trading price of Ksh14.30 per share, this significant acquisition enhances Patel’s standing as a key individual investor in the bank.

The announcement of Patel’s increased stake coincided with a 0.35 percent rise in Co-op Bank’s share price on Tuesday morning. This reflects market optimism tied to his involvement.

Co-op Bank has continued its strong financial performance, recently posting a 5.2 percent increase in net profit for 2023, amounting to Ksh23.22 billion ($179 million). The bank also issued a dividend of Ksh1.50 per share. If the bank maintains this trajectory, Patel and his wife could earn close to Ksh140 million ($1 million) in dividends from their current holdings.

Patel’s broader investment strategy on the NSE

Patel is widely recognized for his value-driven investment strategy, targeting stable yet undervalued companies with significant growth potential. His portfolio includes substantial stakes in leading firms such as Absa Bank Kenya, Bamburi Cement, Carbacid Investments, Sanlam Kenya, and CIC Group.

The increased stake in Co-op Bank aligns with Patel’s long-standing approach of identifying and seizing long-term investment opportunities. His strategy continues to bolster his influence on the NSE and his reputation as a key player in Kenya’s financial markets.

A lasting impact on Kenya’s financial landscape

Patel’s patient, calculated investment style has made him one of Kenya’s most respected investors. His growing stake in Co-op Bank underscores his confidence in the institution’s potential while reinforcing his position as a pivotal figure in Kenya’s financial ecosystem.