Pow Rocket 2026
Good evening, welcome to the New Year for All Things are Possible Sundays. I know we’re already in February, which is my birthday month, but it’s all good. As I write this article, I’m already working on the video essay based on it. I don’t have a specific date to release it yet, but I will. It was really hard to get people to interview on ATAPS; most of them didn’t respond after showing initial interest.
But I decided to take a different approach. We are looking at the CEO of Choppies, Ramachandran Ottapathu, so let’s get into it
Choppies has been experiencing a major brand comeback with its online campaigns and giveaway promotions. However, what people aren’t noticing is the investor confidence in the company’s stock price that’s happening. And behind all this comeback is one CEO who has managed to redeem the company in the public’s eye.
Background of Choppies & CEO
Established in 1986 in the small town of Lobatse, Ramachandran Ottapathu, a qualified accountant, joined Choppies, which was previously named Wayside Supermarket. Ram, short for Ramachandran, said in an interview on the Mogobe nuggets of wisdom podcast that Choppies was his dream that he relentlessly pursued, which was difficult, but he loved the journey. He also said that, when they had a small store, he told people they would become the biggest supermarket in Botswana, and people would laugh at him, but he would be the one getting the last laugh. After one of his friends, who was rich, borrowed them money, they opened a store in Gaborone in 1999, it was their third store, and then everything changed when he saw the response, he knew his dream of having the biggest supermarket in the country would happen.
Insane growth and Stock market launch
From 2003 to the 2010s, Ram led Choppies to expand aggressively across the country, consolidating all stores into one brand. By 2008, the first Choppies store was opened in South Africa, in Zimbabwe by 2013, in Zambia and Kenya by 2016, Mozambique and Tanzania by 2017. Going back, it was listed in the Botswana Stock Exchange on January 26, 2012, as the largest IPO in the BSE's history, raising approximately P350 million, and then on May 27, 2015, listed in the Johannesburg Stock Exchange. But something else happened that followed this JSE listing, which was really huge.
The stock price of the company rose to P5.50 from its IPO in 2012, with the JSE reaching approximately R7.30. This was caused by 3 factors;
The secondary listing in the JSE brought hype and raised funds from professional institutional investors, raising R570 million (P466 million), increasing liquidity, and the JSE listing forced research firms and banks to invest as it boosted their confidence and that of retail investors.
The pan-African aggressive expansion of Choppies now was no longer just playing in Botswana but among other African countries’ markets, South Africa, Kenya, Zambia, Zimbabwe, Tanzania, and Namibia. Also, the sheer growth speed was insane enough for investors to see it as a future growth stock.
The company had a strong financial performance as it grew its yearly revenue as high as P5.4 billion, with Botswana being its biggest generator of this revenue, which easily covered the losses of expansion.
Downfall
At P5.40, the stock was trading at a high Price-to-Earnings (P/E) ratio, meaning investors were paying a premium for growth. But this high valuation created a "bubble" that burst when the 2018 governance crisis revealed that some of this rapid expansion hadn't been managed with proper financial oversight.
By 2019, something seriously bad happened, as Ram was suspended from being the CEO of Choppies; it was about a ‘breakdown of trust’ between him and the board, led by former President Festus Mogae.
The reasons were
Financial reporting issues: The company failed to publish its 2018 audited financial statements on time, leading to the suspension of Choppies shares on the BSE and JSE.
Forensic & Legal Audit Findings: Preliminary investigations suggested potential misconduct, including "fictitious" transactions and violations of the Competition Act (specifically relating to a P110 million "loan" for an acquisition of Payless stores without board approval).
"One-Man Show" Allegations: The board accused him of running the multi-country operation without proper governance or oversight, leading to massive losses in the South African and Kenyan markets.
Therefore, this led to the stock going on a decline for the first time, causing investors to lose millions. But Ram’s suspension was short as it was only 3 and a half months. From May 22, 2019, to September 11, 2019.
When Ram came back, he didn't just wait for the suspension to end; he actively fought to replace the board that suspended him:
Shareholder Support: Despite the board's opposition, Ram held approximately 20% of the company's shares and secured the backing of other major institutional investors.
The September EGM: He called for an Extraordinary General Meeting (EGM) on September 4, 2019. At this meeting, shareholders voted to appoint a new board of directors, effectively ousting the members who had suspended him.
Exoneration: A forensic report by EY and a legal report eventually cleared him of more serious allegations like money laundering, though they still noted significant governance lapses.
Reinstatement: One week after the EGM, the newly appointed board lifted his suspension, stating that his leadership was "essential to the stabilization of the business."
But Ram had bigger fish to fry; his company was losing investor confidence, and the public’s confidence in the brand. To make this worse, COVID-19 hit, and by 2020, the stock was at an all-time low, priced at P0.69, making it a penny stock.
The comeback
Post-COVID era, 2 December 2025, something that shocked the whole BSE investor world happened. Following the share price, having languished in the sub-Pula range for an extended period, executed a decisive breakout, advancing from a close of P0.92 at the end of November to P1.09 by December 2, 2025. This movement, representing a cumulative appreciation of approximately 19.8% over two trading sessions and a specific single-day gain of 9.0% on December 2, marks a critical inflection point in the company’s post-restructuring narrative.
But how Choppies got this break wasn’t something that happened all at once it was a convergence of fundamental, strategic, and governance-related developments that crystallized during the company's Annual General Meeting (AGM) held on November 28, 2025. The market's response, a robust re-rating of the stock, reflects a fundamental shift in investor sentiment from viewing Choppies as a distressed turnaround play to recognizing it as a stabilized, cash-generative regional retailer with a cleaner balance sheet and coherent growth strategy.
First, Choppies had to fix its overextension issues of growing into other African markets that failed to generate needed cash flow, like Zimbabwe, South Africa, and Tanzania. This growth was fueled by debt, which became unsustainable. The company faced negative equity with more liabilities than assets. Ram Ottapathu led Choppies to execute a textbook balance sheet turnaround:
Asset Disposal: The company aggressively divested from loss-making regions (South Africa, Mozambique, Tanzania).44 This "Asset-Lightening" reduced the operational cash burn.
Debt Restructure: Proceeds from these sales were strictly allocated to debt reduction agreements with lenders.43 The strategic priority shifted from "Growth" to "Solvency."
The Outcome: By 2024/2025, the strategy had succeeded. The company resumed dividend payments, signaling that the balance sheet had been restored to health. The strategy shifted the company from a "Leveraged Aggressor" to a stabilized operator focusing on core markets.
As I’m writing this script on 2026 January 14, Choppies is at P1.90, it was the highest returning company in the BSE in 2025 with around 109% yearly return. Not only has it restored both investor confidence and the public image as well, as seen by their social media engagement with their audience, and their promotion campaigns, giving away cars, food vouchers, and a home.
Ram Ottapathu had the final laugh, as his company, which began in Lobatse as one store, was being made fun of for having such an ambitious dream of being the biggest retail company in Botswana. Now, his dream is a reality as Choppies has over 170 stores nationwide, surpassing the 100 mark in 2024, and 250 stores when combined with the stores in the rest of Africa.
He has shown that with perseverance and relentlessness, All Things Are Possible, even if there are setbacks in life.
Sources
Mogobe podcast
Choppies Botswana
The following sources provide a comprehensive look at the 2019 suspension and reinstatement of Ramachandran Ottapathu (Ram). They cover the board’s reasoning, the role of Farouk Ismail, and the eventual exoneration.
Official Financial & Board Reports
Choppies 2019 Annual Report * Details: This report explains the delay in financial results, the resignation of PwC as auditors, and the outcome of the Extraordinary General Meeting (EGM) held on September 4, 2019, where the old board (which suspended Ram) was replaced.
Details: Provides the context of the legal and forensic investigations and the appointment of Mazars as the new auditors.
News Analysis & Investigation
Summary: Reports on the forensic audit by Ernst & Young (EY) which cleared Ram of more serious criminal allegations, facilitating his return.
Summary: A detailed timeline of the power struggle between Ram and former President Festus Mogae. It highlights Ram's court victory on August 30, 2019, which postponed his disciplinary hearing and set the stage for the EGM.
Summary: Covers the reaction of major institutional investors like BPOPF and BIFM, who expressed concern over the "shock" outcome of the EGM and Ram’s immediate return to the boardroom.
Summary: Details the specific findings regarding the Fours Group and Payless acquisitions that were at the heart of the "misconduct" allegations.
Summary Data Points
Suspension Period: May 22, 2019 – September 11, 2019.
Interim CEO: Farouk Ismail (Co-founder and current Director).
Key Reason: Alleged governance lapses and "fictitious" transactions related to regional expansions.
Pow Rocket Press article: Choppies' insane comeback, explained, Balance Sheets that build empires in the BSE
