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.”
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Are you guys thinking that RSS doesn't know about muslim education( system..? (madarasa)??? They knew every thing but acting as if doesn't knw.their main intension is to establish a Hindu Rashtra to achieve that goal they deliberately creating unrest in the society. They have already listed Muslims Christians and communist are their enemy for Hindu Rashtra. To achieve their goal they keep hunting for Muslims and their institute. These kind of programme doesn't solve the problem of Muslims instead create a lot. Better muslim groups must educate SSF about RSS ideology and their ultimate goal.
One must understand the fact that Soolibele will not rest until india become Hindurastra.you guys make any adjustment with RSS ideology but they won't change their mindset.each and every opportunity what you provide for them they will make it as a weapon to criticise in other stage. I can understand the intension of the organiser but the outcome will be 0. (Zero). It's better SSF to organise a programme for Muslim groups \ jathyatheetha rastradalli Muslim sangatanegala javabdaari \"???? will they show the same spirit and interest..???"
Why these Sunnies always with sangh pariwaar?
Even in Ullal uroos also most of the guests are Sanghis.
Kanthapuram is the supporter of modi and sangh pariwar.
may be he is enemy for true Muslims.
Instead of nasty criticism, you fringe elements show the guts to invite him for your religions samavesha (convention) and silence him. Ofcourse, the Ulemas present gave befitting response to him and tried their best to clear the misconception of Islam. Everyone knows who is Soolibele and what he stands for. Still they invited him to present Islam. Instead of appreciating their efforts, some are trying to fish in the muddy waters. shame on you!!!
Im not a SUNNI
Im not a SALAFI
Im not a Shia
Im not a SECT
Im a MUSLIM
Cheddis never teach them what is in Madrasas and they feed hindus which we muslims never teach in madrasas. WE muslim need to Convey the message to the hindus. If we dont convey to the leaders of them Then they will engage more of such ignorant acts. Even after conveying the message, if they still follow evil acts.. Then we muslims should live it to ALLAH the true God who can save or accept his decree for whatever happens. ALLAH will look after the OPPRESSORS. so dont worry MUSLIMS.
Dear HINDUS .. Honestly in Madrasa we are taught that
WHO is our CREATOR, the CREATOR of all that exists, Who give life & death & who will RESURRECT us all to JUDGE that is happened in this world.. TRUE MUSLIMS will never despair.
When we come to know that CREATOR doesnt have any image or PICTURE or statutes.. WE muslims stay away from such thing from attributing HUMAN thinking into what the CREATOR himself, said. That is the only thing which ALLAH will never FORGIVE...
Many scientist accepted ISLAM by the Scientific Accuracy which is mentioned in QURAN which is not changed since it is revealed and it will be protected by ALLAH (the creator of all that exists) . Please try to know more about QURAN and staying infront of MEDIA and accepting whatever said in it.... Its just Fooling U guys cos U never read your own religious scriptures which says NA TASYA PRATIMA ASTI>
There is no point in criticizing Mr. Sulibele, as he was making a statement based on his knowledge on Islam and Madrassa. And the responsibility to clarify the shortcomings in his speech is the scholars there. I hope they carried out their duty. Dialogue is the best way for understanding each other. One-sided ranting does not be in the good interest.
Really shameful. Are these musliyars crazy ?? Why they invited this communal guy? Do no call and give respect to RSS people in Islamic programs . Really shameful program.
Invite him to All Madrasas and make him read a few lines on Who is God and Show him the Scientific knowledge of QURAN and let him know what we Worship... which also mentioned in their VEDAS...
Without knowing people commit IGNORANT acts.. Let us invite and teach him the REALITY of MADRASAS.
These musliars invited sulibele without giving him the message of Islam.as per his knowledge madrasa and musliar is islam. so there is no wrong in his thought and speech. instead of spreading moulood spread this message of islam to your co brothers like sulibele
Sometime back Jamate Islami Hind and SIO invited Shivram Karanta as a special guest in Malpe Jamiya Masjid Symposium. He also talked in the same way as Sulibele. In the year of 1984, Muslim Welfare Association of Udipi, organized a Eid Milan at Rajangana at Krishna Mutt, Pejavar Seer was Chief Guest, stated that he also believe in one God that is Sri Krishna unlike Muslims. During 90's At Uroos function of Saidaani Bibi Darga at Central Maidan, Mangalore, Veerendra Hegde was Chief Guest, claimed that, We Hindus worship God while Idol is standing position and Muslim worship sleeping position, there is no difference between type of Worship he asserted.
However, one RSS patron and many Musliars were not correctly defended Islam in the podium. This will be a lesson to the Sunni Jammaitul Muslimeen and Sunny Educational Development Committee not invite ultras of RSS in the future unless there is a good orator to defend these Bajrangis. Because they are strong enemies of Islam and Muslims.
I appreciate that this program was held and there was a short debate clarifying the misconception about Islam and Madarsa, whatever said about Madarsa, Islam and it's followers was clarified on the podium itself.
I wish more such programmes and events should be conducted by our leaders so that there is peace in the region.
All are human beings keep on telling them about islam they will understand one day, just like how media keep on criticising about islam and made people to believe that muslims are bad people. They are working 24x7 to defame us let us work too to propogate the truth even one hour a day is much much enough.
Moilars didn't get any better guest...Even if cow or goat was invited instead of sulibele to the venue it would have been better guest...Awwe avodu nikulegu...
Abusufiyan n zaini supposed to wear orange colour dress,,,, and one day they will
Disgusting! Musliyars wake up ! there is a sayings
\Kardu uughisikonda\""
Moilar: Eer daane moolu?
Sooliebele: Yaan Moole!
Moilar: Bokka eerna cheddi parivara?
Soolibele: Yeregaavuye kiri kiri? yepala avve mone thoodu thoodu saakanad. moolu ragaale ijji.. daada pandala akulu thasbi malthonde uppuver
Hilarious !Disgusting soolibele in our own programme critising madarasa remebering me a famous kannada saying \donne kottu pettu tinnodu\"!!!However organizing team well deserve this tease bcoz themselves dont know what they doing!!!"
Good Gathering of Musliyars!
Musliyar Nannayal Naad Nannai!!!
He is a product of bajrangies...of course he does not like Muslims at all...creating problems among Muslims & Hindus is his fundamental job...why he has been called to this function...don't understand that...
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