KOCHI: Guess which promoters of Kerala-based listed companies experienced the most significant increase in wealth as the Indian stock markets reached a new record last week? A close analysis by TNIE of the stock performance of Kerala companies since September 2021, when the benchmark Sensex crossed the 60,000 mark for the first time, showed surprising results.
While the value of the shareholding by promoters of Wonderla Holdings, Kalyan Jewellers, V-Guard, and Kitex Garments witnessed an increase, the founders of Manappuram Finance, Muthoot Finance, and Geojit Financial Services saw their wealth declining in the last 21 months.
Arun K Chittilappilly, managing director of Wonderla Holdings, is perhaps the biggest beneficiary of the current bull run. His 35.75% stake in the amusement park company went up by nearly 150%, or a whopping Rs 684.55 crore, in the last 21 months. The value of Arun’s stake in the company went up from Rs 464.45 crore to Rs 1,149.04 crore based on Friday’s stock price. The stock price shot up from Rs 229.75 apiece in September 2021 to Rs 568.40 on Friday.
The Sensex touched the 60,000 mark for the first time on September 24, 2021, and on Friday, it touched a new high of 64,718.56. The other big gainer in the stock market rally is the promoter group of Kalyan Jewellers. The value of T S Kalyanaraman’s holding (20.94%) in jewellery has gone up by Rs 1,669 crore in the same period, from Rs 1,501 crore to Rs 3,170 crore, an increase of 111.19%. His sons, T K Seetharam and T K Ramesh own 18.06% stakes each in Kalyan Jewellers. Their wealth increased by Rs 1,440 crore each — from Rs 1,295 crore to Rs 2,735.14 crore after the stock price shot up from Rs 69.60 to Rs 147 in the last 21 months.
The other big gainers in the bull market are promoters of V-Guard Industries. Mithun Chittilappilly, MD of V-Guard, owns 19.99% of the company. The stock rally has seen Mithun become richer by Rs 274.72 crore. Sabu M Jacob, the promoter of Kitex Garments, who owns 34.18% of the company, became richer by Rs 44.89 crore, from Rs 382.90 crore to Rs 427.79 crore.
But, surprisingly, the new high for the benchmark stock indices has not been reflected in many Kerala-based companies. The stock prices of some went down in the same period, wiping off the wealth of the promoters in the period under consideration.
The biggest loss in wealth among the Kerala companies may have happened to Muthoot Finance and its three main promoters: George Jacob Muthoot, George Thomas Muthoot (both own 10.87% stakes), and George Alexander Muthoot. While George Jacob and George Thomas’ wealth eroded by Rs 1,168.82 crore each, the value of George Alexander’s stake in the Kochi-based NBFC fell by Rs 628.22 crore.
The promoter group’s value of shareholding lost Rs 7,828.32 crore, decreasing from Rs 44,318.28 crore to Rs 36,489.96 crore. The wealth of V P Nandakumar, founder of Manappuram Finance, also saw a decline. His wealth, based on the value of his shareholding, declined from Rs 4,245.86 crore to Rs 3,248.58 crore. He owns a 29% stake in the NBFC. Likewise, the value of C J George’s 18.12% stake in Geojit Financial Services fell to Rs 212.45 crore from Rs 332.86 crore.