Feb 19: Bavaguthu Raghuram Shetty was once a typical billionaire with a taste for the high-life.
He splurged on a private jet, vintage cars and two entire floors of the Burj Khalifa, the world’s tallest skyscraper. His website shows him hobnobbing with politicians, Bill Gates and Bollywood royalty.
“The thrill of speed and freedom makes me love cars,” Shetty, 77, told local reporters last year.
Shetty had more than enough money -- at least on paper -- to afford such a lifestyle from companies he helped found, including hospital operator NMC Health Plc and financial services firm Finablr Plc. On Dec. 10, his stakes in the public companies were valued at $2.4 billion, making up the bulk of a fortune spanning education, hospitality and one of the world’s oldest tea companies.
Then, a week later, Carson Block came along.
Block’s investment firm, Muddy Waters, issued a report criticizing NMC’s accounts and disclosing a short position. Since then, Muddy Waters’s scrutiny has snowballed into a troubling scenario for Shetty that sheds light on his complex share arrangements and casts doubts about his net worth. His holdings in Finablr and NMC are worth $885 million, but Shetty’s fortune may now be just a fraction of that, depending on the size of his borrowings.
Filings this month show that Shetty pledged a quarter of his NMC stake against loans with First Abu Dhabi Bank and Zurich-based Falcon Private Bank. Two other shareholders may own half of his reported stake. Another lender -- Al Salam Bank Bahrain -- has already sold some of those shares to enforce security over a loan for Shetty, and NMC said Tuesday that First Abu Dhabi Bank sold another chunk earlier this month.
The situation “seems to have gone beyond some of the issues that Muddy Waters focused on initially,“ said Gavin Launder, a fund manager at Legal & General Investment Management, who owned shares in NMC until October. “The increased scrutiny has unearthed other issues.”
Law firm Herbert Smith Freehills has launched a review of Shetty’s holdings at his request, a spokesperson for the Indian-born businessman said, declining to comment further until the analysis is completed. Shetty resigned Sunday as NMC’s chairman.
In its Dec. 17 report on NMC, Muddy Waters hinted at potential overpayment for assets, inflated cash balances and understated debt. Shares of the United Arab Emirates’ biggest private health-care provider have since plunged 67%, and the firm is now the focus of takeover speculation. The sell-off also spread to Finablr, whose stock has tumbled 64% in that span.
NMC has disputed Muddy Waters’s claims, and the company hired former FBI Director Louis Freeh to conduct an independent review of the short seller’s allegations. Meanwhile, local regulators “are making inquiries with the relevant parties,” a spokesperson for the U.K.’s Financial Conduct Authority said.
Shetty is hardly the only ultra-wealthy person to leverage his assets. Elon Musk has used his shares in Tesla Inc. to obtain personal loans, while Oracle Corp. Chairman Larry Ellison has put up millions of the company’s shares to fund a lavish lifestyle that includes trophy properties, America’s Cup teams and the Indian Wells tennis facility in California.
But such deals can also sour, as demonstrated by Shetty’s lenders selling shares his investment firm pledged. He and his advisers are investigating details of the sales as part of their legal review, according to filings.
To complicate matters, Shetty pledged another batch of NMC stock in 2018 as part of a so-called equity collar arrangement with Goldman Sachs Group Inc. that uses options to limit the impact from share moves. Last month, he also pledged most of his stake in Finablr to refinance a loan from the company’s takeover of foreign-exchange firm Travelex for about $1.2 billion.
BRS Ventures Investment, the UAE-based holding company for most of Shetty’s assets, doesn’t report consolidated financials, preventing a complete analysis of his net worth. His other assets include a catering company, a waste-management firm and pharmaceutical business Neopharma, which four months ago was in the early stages of planning for an initial public offering.
Block, 43, earned his reputation as a short seller a decade ago through targeting U.S.-listed Chinese companies that he claimed were frauds. More recently, his San Francisco-based firm focused on British litigation-finance firm Burford Capital Ltd. and Japanese biotech stock PeptiDream Inc. Short sellers seek to benefit from a decline in a company’s share price.
Shetty founded NMC in 1975 after moving to Abu Dhabi from his native India. He created Finablr two years ago to consolidate his financial brands before listing it on the London Stock Exchange in 2019.
Block said he didn’t anticipate NMC’s shareholding drama.
“I wouldn’t have been able to predict that we’d get these bizarre disclosures about unclear share ownership coming out of the company,” he said in a Feb. 13 phone interview. “This has been obviously a more dramatic unraveling than we usually see.”
Comments
hahaha howdu mama , mama helda avnu helidaage madrappa , research anthe kumda ...1400 years bere ... funny ... we have seen your law in ISIS . to rape non muslims how ur law was used ... fight maga , do onething .. first muslims show they practise 100% sharia , then we will believe ... 95% crimes , rapes , terrorism , cheating , fraud , chain snatching done by your community ... first role model agi amele nimma religion law na national law alla international law madana ... i was reading a funny groom requirement in one muslim matrimony website .. groom must grow very long beard anthe ... mama nin research prakara yaake mama? helappa .. beard gu dumtaka madkolodakku difference yenappa ...
Rasheeda can wear bikini in summer season it's best for you, like uncovered chocolate
In Islam TALAK(divorce) is not easy way. For Talak(divorce) should be pass from 3 stage. that's called 3 TALAK.
Some Muslims and Non Muslims thinking that, one who telling at a time 3 TALAK, TALAK is over. It is again shariya(LAW) and they donot fear Allah(s).
Muslim cannot give TALAK for simple issue. Allah(s) will punish those who are giving TALAK for simple issue and those who not follow correct way of TALAK.
Islam gives ways for couple who couldn't get together...In certain religion there is no such concept of divorce once they are married there is no way of separating till death ...In Islam talaq or divorce is discouraged...If the couple can't get together then it provide means to seperate through talaq...If once talaq is said it doesn't end in divorce in between there is way to reconcile,couples should try to keep aside their differences..Only if scuffle further continues then it is better way to get divorced rather than ending in violence..There is nothing called 3 talaqs in single setting..It is against the concept of talaq..There are people who misuse it..There is talaq and waiting time
For women there is concept of khula if the men doesn't look his wife well she can divorce him through Khula...
For those who comment with pseudoname on burkhah...Burkhah is not recommended...Islam only says cover your hair and body and be modest...If someone is unhappy they can go in khujrao style we are not forcing them..For men too there is hijab..I.e from top of navel till knee..Body of men and women are not the same.......Most of our women wear burkhah willfully..Not like a man forcing women and tying tali on her neck..which she has to carry the burden till her death
BCH & MCH .... Krishna polygamy? Venkatesha polygamy? I also polygamy. So what turkanna. Anything I am readyMCH. Rule must be same for all human beings.Every one who sticks to one God are fanatic MCH. so shut up.
Dear avinash, Your comments shows how ignorant you are. Please think and analyze. Hizab is required in public places not at home. This is for security and modesty of the women. Actually she is not suffering , the person who want to see her beauty or nudity is suffering. Please check the diffrence between the women who wear hijab and other with sari. In sari you can figure out everything about that women which usually men like you want. This is weakness of all the men.
Hijab also treats all the women at par. You can not differentiate her as white/ Black, rich or poor, what she wear costly one or cheaper one? I think hijab should applied for all the women irrespective of religion for the safety and modesty of the women.
Regarding Talaq & polygamy , We know , sometimes uncultured people misused and endangered to the life of muslim women .. but compared to misuse of human laws or any national laws , is misused very less ... even complaints by muslim women also very rare except some modern women by the influence any particular vested interests....
In a civil country , if anybody misused law , actions to be taken against them , banning it is not the solution...
Burkha , Hijab are the modest dress to pious people .. there is no compulsion to wear it , if you doesn't like , you may find , a lot muslims , who do not wear burkha or hijab... questioning others rights to wear is like..... I am prostitute ... demand for others also same....!
Now a days there is season of challenge done on Islamic rules ....
Good for NON MUSLIMS ... (Other wise there are some honest non muslims who are EAGER to know about the CREATOR, if such thing doesnt happen they will never know who is their TRUE creator)
Despite several reminders from Muslim leaders which they also quote from various religious scriptures that GOD is one and Worship him ALONE...
People are still not waking up for the message of ONE GOD. who created them and all that exists..
Now There are few leaders who challenge the GOD's law...
& We MUSLIMs expect that cos Prophet Muhammad pbuh said a Time will come when people dont know who is their CREATOR. and there will be many followers who will follow BLINDLY (Without even pondering HOW they Got this LIFE, What is the purpose of LIFE and living a life of UNAWARE)>>> It is happening infront of our EYES in the present age..
If we study sharia law.. We will never complaint on its wisdom.. But When the ignorant leaders make bow bow many who doesnt know or read about sharia law are all clapping the hand and queing up to jump in DARKNESS>>>
Study SHARIA LAW and know who is the CREATOR.
Know one thing GOD is most merciful... He gave many chances to Pharoah, the most evil person who tortured the people of MOOSA Pbuh during his time... We should read about his END
We should escape the END result... which will show the real MARKS whether you Passed or NOT.
Know the rule of the CREATOR and STop your following BLINDLY
Hmm.. Not Surprising, the Central Govt. Panel (moderated by VHP ) is keen on enforcing a law like this.
Dear Sanghis, remember the song in kannada - \ Naari ya Seere kadda, Radheya Manava Gedda, Kallara Kalla KRISHNANU..\" :-D
And they want ban on polygamy..What irony !!
With regards to muslim women asking for such law, we muslims wouldn't really have much of problem if the Govt. brings such law. We understand these women, as some men tend to take unfair advantage of the given Shariah Law. Infact, this law banning such Talaq, and polygamy, will make us more responsible of our community and discipline us.
Banning hijab, hmm don't even think of it. If these women don't want to wear, let them not be forced. and let them
also not enforce their thoughts on other women who want to wear Burkha/Hijab etc...
BTW, Can sanghis help me in identifying the names of these models in the architecture of Khujarao , Belur temples..."
Comment by so called Rasheeda looks doubtfull name. First of all there is no compulsion in islam. Any one need to follow the shariah of allah can follow ,if you need to follow satan you can do that. But always make the better choice for yourself. Choose paradise instead of hell, hell fire is much more more hotter than this worlds peak summer.
Make Islamic law a Indian law so that it will become uniform law. Since Hindus or Christians do not have any religious laws there should not be any problem for them to follow Islamic law. Hope Govt of India make Sharia law applicable to all Indian citizens. Please note Criminal Law is already applicable equally irrespective of their religion & Muslims do not have problem with that. 1400 years of research has been done on Islamic sharia law and is practical law unlike man made laws.
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