High-net-worth investor Imtiaz Buhardeen this week increased his stake in Shaw Wallace Investments PLC (KZOO:SL) to 20%.

The total investment of 34,782,729 shares are held between Almas Organization (30,689,114) and Carlines Holdings (4,093,615). After reaching a 10% stake in December 2021, further acquisitions in 2022 have culminated in a 20% total stake in March. 

Shaw Wallace Investments PLC is the investment arm of the Renuka Group which owns an actively managed portfolio in publicly listed equities. In its listed portfolio the company holds stakes in Renuka Hotels, JKH, HNB, Ceylon Hospitals, as per its latest annual report.

Buhardeen is the second largest shareholder of the company while Renuka Enterprises Ltd. maintains control with 51% of the company. 

The company’s total portfolio equity value was 1.95 billion (Rs. 11.20 NAV per share) as at 31 December 2021 and has grown by 10.7% over the last year. Shaw Wallace Investments PLC reported over Rs. 222 million in earnings over the nine month period from March to December 2021. The earnings per share for this period was Rs. 1.28.

Shaw Wallace Investments stock reached a high of Rs. 18.30 during the first quarter of 2022, implying a market capitalisation of 3.18 Billion. 

KZOO acquired 20.95% of unlisted Shaw Wallace & Hedges Ltd. – the holding company of the property development arm of Renuka Group – for about Rs. 1 billion with funds realised from disposing of On›Ally Holdings. 

In October 2021, the company acquired 29.97% stake or 7 million ordinary shares of Guardian Capital Partners PLC (WAPO) at a price of Rs. 32.30 per share in a deal worth Rs. 252.13 million. Related party Shaw Wallace & Hedges Limited (SWH) bought 33.68% of WAPO. WAPO held 468 million in Investment Assets held at Fair Value and 343 million in cash reserves as at December 2021. 

The percentage of shares held by the public as at 31 December 2021 was Voting 49.37% (30 September 2021 – 36.61%). The number of voting shareholders representing the public holding was 2,905 as at 31 December 2021 (30th September 2021 – 2,366).

The CSE had a landmark year in 2021 as local corporations reported record earnings and investors allocated capital to equities to minimise the impact of high inflation and low interest rates. 

Imtiaz Buhardeen has emerged as a leading player in the Sri Lankan financial markets and also holds a 22% stake in Sierra Holdings, a 12% stake in Ambeon Holdings and 16% of Malwatte Plantations Voting shares and 45% of Non-Voting shares.

Stock market plunges further due to mixed sentiments over rupee devaluation