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.”
The couple have been identified as Neha Anjum and Pradeep, both hailing from Chitradurga.
Comments
2 incidents recently took place in Mangalore Muslim Girls married to Hindu boys, both of them came back their Husbands also embraced Islam. all knows that Islam only a true community rest all leads to hell fire and baseless
Infact she loved hell fire by loving a non believer of Allah who created all the universe. It's better for a Muslim man to marry a slave women instead of marrying a non believing women. Same way for a believing women it is better to marry a believing slave man instead of marrying a non believing rich person. May Allah give Hidaya to both.
MastAli , it's better than worshipping a child rapist
she has become blind in love, its okay no big issue, when the whole world is becoming Muslim, these incidents should not stop our spirit of sharing the belief of Islam. See the percentage of growth of Islam its higher than any other religion. Those who enjoying the news that Girl married Hindu remember my words Islam will enter every home, Truth will prevail and falsehood is bound to perish..
..powattt apara...attig pooith.....2 months l wapas bandaaal ....but it will b too late....
i am a muslim... i dont see what is wrong with this...so what?
she was told it is haram by her parents , yet she did... its her decision.
you all should start ignoring such cases and go ahead and get a life .
Proud indian...
Your view is only yours and it wont effect the one who created you & ME...and all that exists...
Before you mention such silly and arrogant things... Just look what ISLAM says about the CREATOR and the LIFE he had given us all, also in YOUR VEDAS.. which says NA TASYA PRATIMA ASTI... there is no image of God..
It proves that the so called GODs, YOU guys are worshiping in the form of Stones and others are NOT GOD its a man made stones which is LIFE LESS. and stones cannot help U or it will not reach GOD who created U & ME and all that Exists..
Atleast Use your God give intellect when you are worshiping the STONES, animals or even their shit...
The more U worship the created things, U hearts are becoming LIFELESS just like the STONES... Please look for TRUE GOD and Worship him alone ... which is a light for the HEART.
The Girl who run after many gods will not effect a bit for ISLAM.. the religion of TRUTH. please note that...
All the best!
@ Sister Swetha,
Your are absolutely Correct she left every thing for him. And in return what did she gain...she lost the Beautiful Paradise and Gained the HELL FIRE.
We are not at all worried for her, But we are Worried and will pra
Inna lillahi wa inna ilahi rajivoon..... Pity her Parents....
others called terrorist .....we are real desha premis,
if other do love jihad........we do kattale inda belaku
if other do GOVU hatya........we do yajnya /yaaga
if other do kole.......we do unfortunately
if other do anaitika sambhanda ......if swamis do kanya .....
if other do RAPE........if we do deha samparka....
ayyoyyo list never end....
First up all Congratulations to them and the society of Hassan, Wishing you Both Happy married life, really I must very much thankful to the Coastal Digest, one thing you forget to name this \JIHAD\" Could you please name it \"RSS Love Jihad\" any way again wishing you both Happiest married life, I am very much concern about the crazy people around the Globe, both Male and Female Join each other there is no race between both so we have to have understand that this is the real things to happen. You Criminal minded BJP, Bajji Ranji do not be happy next your time to face ok Gentle men, do not forget great Newton's Law \"Every Action has Equal and opposite Reaction\" Believe it Master Criminal Mind people.
Jai hho Bharath Matha
Jai hoo Siddaramanna."
Hidayath denewala Allah hai. Log kuch nahi karsakthe hain.
Congratulations to the couple. You married on your will. Wish you a happy married life!
She left her everything for you, Please take good care of her.
Have a happy life. All the best
She has taken very unwise decision by neglecting her parents. Since she has no respect to her parents, I am sure she will not respect any one else and she will bring more headache to her lover + his parents. However, I pray Allah to give her right way of thinking and let us come to know about her mistake and repent for it. Any how, we are not bothered about her as it is her will and none is going to force her to come back to her original.
what goes around will comes around. but at the moment let them both enjoy....
May Allah protect us from hell fire......Inna illahi wa inna ilahi rajiwoon. may allah guide us in a straight path.
Guys, take it easy. And dont post rude comments. Mistakes are done by everyone. It is better for her to repent. She may correct the mistake. we never know what is the future. Lets not judge anyone. Judgement is from the lord.
congrats... wish u happy married life :) ... she escaped from oppression and slavery ... even cattle lifter in particular community demand higga mugga dowry ... ... haha ...... education level saha hennu makkalalli jaasthi ide ... they dont want to become 1 out of 4 ... so they opt out for christains and hindus ... not only this case , like this many cases are underway ...
Hindu guys are looking for Muslim girls out there.. but forgot about our own sisters..please god gv sme good thnkng to our brothers.. our sister are getting ruined by caste system but these fellow mates are looking for others instead of searching inside.. I dnt knw wat will happen to our sisters
May Allah save all of brother and sister from the fitnah of Iblish... Yha Allah please we born as muslim and grant us death with iman Ameen
This is the result advanced tech. Parents has to check their all mobile nos which has fake names ie real boys name as girls names (dummy) names and incoming calls blocked by lovers. Only user will unlock during parents absence.
Several Muslim girls have married non-muslim men before also. No big deal!
And in all cases, the marraiges have failed and the girls have returned back to their families. This one also will return in a year or so.
parents are not much educated enough to the effect of Facebook and whatsapp. If you want to provide phone to your children give them simple phone where they can not download illicit apps
After getting bored with worshiping Cow, Monkey God and idols. definitely she will return back to the real God. Insha Allah
Ajmer Case is going to repeat again!
truth will prevail and evil will perish soon. In shaa Allah
Inna Lillahi wa inna illahi Rajivoon. Lack of follow ups by the parents and overconfidence of parents and Lack of God fear and religion of Islam leads to these kind of things.
chaddi dal i hate coz its doing wrong is not gud murthi puja is wrong way so i hate chaddi jihad
Congratulations Girl for the best decision.
This is the sign of qayamat, In Sha ALLAH, all this kind of girls will get big punishment.
happy married life, ishwar bless you both.
I am a proud kafir (Infedel) and will always remain so. Millions of girls worldwide - especially from islamic countries and turning to hindusim - one true religion.
I see alot of non-muslims are cursing Islam as always but let me tell you if you go through survey you will find out that most of Hindu girls have got married with Muslims men but we dont show off like you. ISLAM IS THE RELIGION OF PEACE and if you doubt it come to me i will clear your doubts. If you want to cross check what i have said then you better check my Past you ll find out how many HINDU girls have been my Gfs but ISLAM opened up my eyes and showed me the right path so i left all of them to live in peace and got myself prepared for the life hereafter.
I WARN YOU TO STOP ATTACKING ISLAM. TAKE MY ADVISE START LEARNING ABOUT ISLAM THEN COMPARE WITH YOUR RELIGION I ASSURE YOU LL FIND THE REAL LIFE.
Dudhka Dudh Panika Pani :)
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