Suresh Bhagwanji Shah, a Kenyan multimillionaire businessman, has seen a dramatic decline in the market value of his shareholding in I&M Bank Group, reflecting the financial institution’s share price on the Nairobi Securities Exchange.
The market value of Shah’s holding in I&M has fallen by Ksh821.17 million ($6.2 million) in the last 17 days, owing to the recent decline in the group’s shares on the local bourse.
From February 14 to March 26, his I&M Bank Group stake increased from Ksh3.1 billion ($23.47 million) to Ksh4.02 billion ($30.43 million), resulting in a profit of $6.9 million.
Shah formed I&M Holdings, the Nairobi-based parent business of I&M Bank Limited, in 1974. The non-operating holding company, I&M Group, is a significant financial services provider with operations in Kenya, Tanzania, and Rwanda, as well as a joint venture in Mauritius.
I&M Bank announced a three-year plan to create 100 branches by 2026, doubling its physical presence. This ambitious goal involves an aggressive expansion strategy, with the bank seeking to open at least 17 new branches each year. Currently, I&M Bank has 50 branches distributed over Kenya.
However, I&M Bank’s share price on the Nairobi Securities Exchange has fallen by 20.8%, from Ksh22.1 ($0.1659) on April 2 to Ksh17.5 ($0.1314). This decrease lowered its market value below $250 million, resulting in significant shareholder losses.
Shah, who is credited with developing I&M into one of East Africa’s premier banking companies, has a valuable 10.98 percent interest in the top-performing financial services company. This corresponds into 178,514,362 ordinary shares.
The market value of Shah’s investment in I&M Bank has fallen by Ksh821.17 million ($6.2 million) in the last 17 days as a result of the lender’s share price reduction.
The value has dropped 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 among the most wealthy investors on the Nairobi Securities Exchange.