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
#17 THINKERS, Mangalore
Are you circumcising? Where it is in Quran. Hadith is manmade. Allah never gave quran to Muhammad. Angel gave quran to Muhammad. Angel is not almighty, limited in Power. Satan can overtake angel. Muhammad was caught by satan and the angel couldn’t stop satan delivering satanic verses. Your Allah didn’t interfere at the same time. Allah is from the 14th century. Where was allah before 14th century. Allah means in Hebrew Oak Tree. Allah means in Sanskrit Goddess. AlLat, Uzzah and Mannat three daughters of Allah Muhammad worshiped. Khayru al-makireena ! (S. 3:54; cf. 8:30) Allah is the greatest deceiver. In English translations purposely made it planner, scheduler instead of deceiver. Do Muhammad said in his own mouth I am the last prophet in the Quran. Show me from Uthman edited Quran. Do allah said worship me I am God. Allah never spoke to Muhammad in the Quran. Muhammad Hadith is the sayings of Muhammad. Muhammad was caught by the satatn and delivered satanic verses. Jesus defeated Satan, Jesus was sinless. Muhammad is a sinner asked forgiveness from Allah 70X7 times a day. Don’t follow a sinner’s Book. Jesus is truth and Light. Both the names are advocated to God Almighty. Jesus is coming again. Muhammad’s body rotted in the grave.
#17 THINKERS, Mangalore
Are you circumcising? Where in Quran. Hadith is man-made. Allah never gave quran to Muhammad. Angel gave quran to Muhammad. Angel is not almighty, limited in Power. Satan can overtake angel. Satan cannot overtake God. Allah is from the 14th century. Where was allah before 14th century. Allah means in Hebrew Oak Tree. Allah means in Sanskrit Goddess. AlLat, Uzzah and Mannat. Allah is a greatest deceiver khayru al-makireena)! S. 3:54; cf. 8:30 In English translations purposely made it planner, scheduler and deceiver. Do Muhammad said in his mouth I am the last prophet. Show me from Uthman edited Quran. Do allah said worship me I am God. Allah never spoke to Muhammad in the Quran. Muhammad Hadith is the sayings of Muhammad. Muhammad was caught by the satan and delivered satanic verses. Jesus defeated Satan, Jesus was sinless. Muhammad is a sinner asked forgiveness from Allah 70X7 times a day. Don’t follow a sinner’s Book. Jesus is truth and Light. Both the names are advocated to God Almighty. Jesus is coming again. Muhammad is rotting in the grave.
Dear Prem Prasad,
Sometimes when we learn from cheddi hinduism its not what hindu scriptures says.. similarly there are half baked knowledge in all community... Even if you are reading english translated QURAN.. Its ok. God helps those who look for him HONESTLY> never keep hatred. instead read QURAN to understand, GOD and his attributes ... Allah is all powerful and all knowing... He even knows what is inside your heart even if you are sitting in the DARKEST place on EARTH.. there are some lessons in the QURAN, if we use our intellect rightly... then WE have a lot in this LIFE other than hatred and Jealousy... Come prem...Look for QURAN honestly.
Please know that ALLAH created everything and he sent many prophets when people deviated and worshiped created things...JeSus pbuh was also a messenger of God. Muhammad pbuh is the final and last messenger of God...
Please check the bible where Jesus says worship me, Hindu scriptures says NA TASYA PRATIMA ASTI... there is no image of GOD ... But cheddis will drag U to worship their man made Gods.. anyway QURAN says Use your intellect, Verify what quran speaks... Think and think again and accept what it says...
TRY IT PREM.
#14 THINKERS, Mangalore
Do you still depend on Quran and Hadith which is a trash. III caliph uthman manipulated and edited it, destroying all originals. Muhammad was made to read 7 versions of the Quran and you have only one quran manipulated by the III caliph uthman. The editor of the Quran was wounded by muslims in the Mosque. He ran away to his house. He was killed in cold blood in his house. His quran was soaked in blood. 9/11 is nothing for Muslims. You killed editor of the Quran. What a sarcastic religion you are following. 110-220 and several other sects ahmadies, salafies and kulfies.
Talibans, al qaidah, al nusrah, lashkar toiba etc, etc., RSS is nothing before these Muslims beheader, killers and butchers.
#14 THINKERS, Mangalore
I read English Quran. Muslims said you should read Arabic Quran because allah is limited to Arabic and Mecca. 5 times performing Salat turning the face to Mecca is in Arabic all over the world. Who needs this Limited allah never knowing humans other languages. Read Sanathana Dharma holy book and the holy Bible of Jesus Christ. you will shun your 110 shia and 220 sunni divide.
Prem prasad,
The media has spent a lot to keep guys like U to think the opposite way... I can suggest U to read QURAN .. U will understand every query which is having in your mind. When U feel hatred towards Muslims. Atleast check Yaar what is written in QURAN (Muslim book)...
Dont depend on cheddi media (JNU twisted issue is one)..and zionist media(9/11) ... which has taken people like you as a playboy for them by keeping the masses in FALSE msgs (There are many videos which exposes their evil works)
Understand LIFE and thank God that someone is introducing YOU to the DIVINE knowledge which will benefit in your LIFE & Life after death.... The more Hatred U keep in your heart, it is like YOU are carrying a MOUNTAIN in your back... So, honestly I suggest U to look QURAN which mentions about the LIFE & DEATH and how evil controls those who are FAR from the TRUTH.
#12 THINKERS, Mangalore
Godse killed Gandhi and no more. Muslims stabbed whole India from the back and the wounds are not healed. Why the Muslims wear Nuns dress and carry out suicide bombs. Whole world knows who are the terrorists.
Syria, Iraq, Iran, Libya, Egypt,Sudan's Darfur and the world knows who are the terrorists - All Muslims support zionists.
Prem Prasad
Please ask the Cheddis WHY they dont wear nun's dress when they bomb and blame...
Come on Yaar, dont think we are stupids, whole india know who are bombers and who are innocent... We dont need to tell who is desh premi and who not... But Godse gang will definetely believe wat U say.
#10 THINKERS, Mangalore
You are not less than a Mohammad bin Tuglaq.
RSS are in self-defense.
Show one Christian Nun in full dress blown herself to kill terrorists and innocents in the name of Christianity.- You are bankrupt.
Prem prasad
Have u seen anyhwere in the media cheddis disguised as muslim planting the bombs and the authorities straight away blaming the muslims and FOOLS like U accepting such false newss...
Might be seen in zionist intelligence ...
#6 Rikaz, Mangalore
Have you seen anywhere in the world a fully covered nun carried out a suicide bombing.
The women is a show piece in the Christian land, Islam's Christianophoia. Who knows she plants bombs anywhere she is willing.
when nuns wear burka and go in flight....no issue at all...its hypocrisy...
Quran never say wear burqa, cover fully top to bottom. Hadith is man made.
She wants to switch seat. She is uncomfortable with the co-passenger.
Abdulle is from a Somalian dissent. Cover picture shows white from M.E. All deceptions.
USA is not taking excuses like France and Belgium. Good that the women is thrown out from the plane – safety first.
shame on USA, the so called liberator and democracy protector......
Divine teaching says it is better for YOU to wear your HIJAB...
People with lustful desires alwz oppose such divine teachings... forgetting that they will face their CREATOR one day. It is cos of the MERCY of ALLAH that U escape now... But he will take care of such trouble makers on its prescribed time.. Until then U enjoy your devilish acts... which will have an end and that end will be very severe .... Look how Pharoah was ruling over the people but in the end he has nothing...
QURAN speaks about the LIFE in this earth and how ALLAH bring back the LIFE after death to justify that has happened in this life.. The same way HE gave us life in the first place
It has created problems around the globe such as Iraq, Siria, Egypt, Libiya etc...now they want to live peacefully by evacuating Muslims from flight and country, if you see president nominate Donald Trump's speech where he does not want Muslims to enter US....
For the second time same airlines committed this hate crime in a month
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