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
Lets put it in a nut shell Khader is the only problem rest everything no problem if Khader is inspired by some false clergy let him keep it personal and not inflict on people. ullal is a place they don't want any organizations interfering they want be on their own, Khader has lost the battle last time in the juma case. he has a good platform to strengthen the party because on one side Rasheed is a congressman and in the other side mustafa is a congressman instead of taking advantage he is supporting a false clergy and causing all the nuisance in ullal .
when members of SSF wants a roudyshitter .Bhuhari wants to be a president of ullal dargha .. imagine of thier thinking is to Grasp power at any cost, Not worried which background he is from.. obviously people of ullal has to against it.. I think UT khader also should have done basic research before he could interfere & favor one side.. criminal entering politices is a common that everyone accepts without any choice.... but in Mosque Committe person with criminal background will never accept at any cost which lead to the situation getting worse.... shame at religious leader & Polictian who support such president.. SHAME on THEM...
Shaffiq,
In 1992, Did Allah have no power to protect Babri Masjid ???
Why did you not question the power of Allah then???
What happened to ullala Wali , he has got numerous karamath .why now he can't solve this problem. It's very easy . Ask Wali and he will say who will be the next president
koora and SSF's Dirty Game
Oh, wahabbis, don't act like the reformers of the society. Ask your gurus in Kerala to stop fighting in the name of Jinn Tawheed. Did you forget your own people fought in the dais (stage) for Jinn Tawheed? Don't you feel ashamed of talking about Sunni groups when you people were divided into more than 8 groups in the name of tawheed, whereas both sunni groups have same belief in Tawheed.
Seeking the help of Jinn is tawheed, whereas seeking the help of Auliyas is shirk. Oh wahabbis where are you people leading to ?
Babri masjid was demolished in 1992. Does it mean that no power for Allah ? So, commentators and Article Headline by ..., never to try to boil your seed by degrading the power of miracle of Auliyas.
Insha Allah, Truth will prevail soon and SK goondas will be going to suffer soon for their heinous act.
I think better to leave this Issue to the Saint to decide thru Karamath. I hope AP & EK both will agree for this to maintain peace in the society.
Only one reason for The fight Is karodepati ones if anyone get president seat in dargah he will be the richest person in ullal full bakwas jiyo aur jeenedo yaaro
There is no difference between dargah and temple. Both make pooja by offering flower etc. Both make jathre(Uroos). Both make nerche (Harake). In islam no where taught like this. They make all this only for money.
SAUDIS say worship the one LORD ALLAH, who created U, Me and all that exists & follow prophet Muhammad pbuh.
IRAN says worship ALLAH, Follow prophet muhammad, Ask with ALI & they also ask with the imaams in the Graves and they have lot of SHRINE worship expecting BARAKAH from the auliyas. which they never said to do such worship for barakah.
NOW TELL ME which ways YOU guys are following... IRAN or SAUDI?
When our IMAAN in ALLAH becomes WEAK, not maintaining SABR & we tend to go & ask with the Creations of ALLAH... which is very dangerous to our FAITH. And our enemies deceive us very EASILY.
I request people to DEPEND on ALLAH alone. Every example on our life have to be cleared by Prophet Muhammad pbuh. he also said even if it is small issues, ASK with ALLAH alone.... ALLAH gives barakah when you really rely on HIM. He knows what is in your hearts .. without patience, some guys are going and following the shia style of worship
We should EXPECT such inner clash when leaders of our community Never encourage to ASK with ALLAH ALONE and are SILENCE and never try to UNITE our UMMAH ... instead dividing each other in the name of GROUP ideology.
DEAR MUSLIMS - READ QURAN with understanding, ALLAH guides those who look for his QURAN, understand it, ponder it... The more U ponder, the more U will depend on ALLAH. NO need for any intermediate. U will praise the auliyas of ALLAH & follow the ways they taught us and will never ask with them but U will only depend on ALLAH for your requirement & Barakah.
May ALLAH guide us all ..
Kotian,
How your religion is to be peaceful when you teach your crew to kill innocent no Hindus?
I also agree that most of the Indian Hindus likes peace but not your organisation.
whats going on, fighting with own people this must be stopped immediately, it makes our rival to go out strong.
this dargha authority should be hand over to the karnataka govt, i request CM Siddaramaih to undertake this dargha's authority,
UT Khader must take all the decision. why this people simply fighting for power, whoever capable of using the power he will get,
Brother Anti-Wahabi
A humble request please read the article again. Nowhere its mentioned \AND NOT FOR REAL MIRACLE\" Well learn to accept the TRUTH.
My personal suggestion this time hand over the Management to SALAFI'S and see the changes.."
Yellare Mane dose thoothe, nangle ningle yella ondume
this is not new.. clash was going on before also but easily they will not leak their secrete outside as we do. true face of religious places in all religion its same. dont die live longer.
why simply clashing for power, this people wont take anything while dying, till death do some good work instead of clashing with each other
Miracle is there in the Quran not in any idol or dargah... Better if people understand it for their success in this duniya and hereafter..
Here I saw many non muslim brothers confused with Sunni, AK, EK and so on.. Worshiping dargah is not at all Islamic.. Worship only ONE God. thats real Islam.. Regulate 5 times salah, Give zakaath/ sadqa, help each other to live peacefully and let other creations of Allah live peacefully.. Make this life worth living.. Thats what Islam teaches and Quran teaches and history teaches us..
There are some exceptions - some ignorant people dont want to understand this and always blaming Islam is their habbit whenever commenting.. Thats without proper knowledge of Islam. May Allah give hidaya to all of us..Ameen
This article is written by a pakka wahhabi girl with the only intention of creating Fitna. In the first para itself the writer is saying that the Darga was famous for \stories of miracles\" and not for real miracles. Strange that coastaldigest.com publishing these kinds of extremist Wahhabist articles these days without examining it. I am a big fan of CD since its launch. hope it will realise its mistakes and avoid unnecessary crtisicm of the groups of aalims."
Viren Anna irr dane Mulu...Chaddi budyaara.
Shiya Sunni clash reached Mangalore too? this is really shocking. now bomb blasts also may start in karnataka like arab nations.
What is Sunni group?
What is AP?
What is EK?
Can someone please explain us. story is anyhow interesting.
The history of Muslims is full of violence. This is the good opportunity for Muslims to renounce their violent faith and embrace Hinduism the true religion of peace, and leader a dignified life instead of fighting in the name of AP, EK, PK, TK
Very sad. Ignorance at its peak.
Fooling ignorant people by any so called masjid management or by any greedy imaams is not at all appreciable. Either imaams of the Masjid or the management committee of the masjid should ENLIGHTEN the people on the basis of teachings of HOLY QURA'N and SUNNAH.
Why not leave shirk as Allah has ordered in his book.
Masjid is house of Allah which are to be 24x7 active with prayers, education and community development activities. No need of Dargas which is supporting shirk. Oneness of Allah, Tawheed is our requirement.
Community should not waste time and energy in fighting for unnecessary reasons.
We heard of Battle of Badr,Battle of Uhud,Battle of Khandaq all for the sake of LA ILAHA ILLALLAH. But Yesterday Battle of Ullal is some thing unique Battle of Power.Great...its one of the sign of KIYAAMATH.
Beware The final Day is very close. Get ready and be prepared for Life after Death.
It is not EK vs AP as mentioned but it is AP group vs rest.
In Ullal there are total 49 committee member elected of which 27 supports Rashid Haji means Rashid Haji has clear majority for Presidency.
And about President selected by Kazi Khoora Thangal and SSF is Bukhari who dont have the majority but also people know what his background is.
SSF people lost the election instead of handing over the power they forwarding a rowdy sheeter as president to create terror in Ullal for that one of Minister from region supporting SSF by sending Waqf officer to lock the Darga.
Instead of doing all this let all member sit together elect the President who has the majority
Now or before thier is no miracles Ullal foolising people by deviled power and political. Power it's shows now.may allha gave Hidayath
Ameen
Nor was any miracles before or now everything was from allah but shaitan decieved them by making them believe it was from the dead saint syed madani.
Poor thinking n following the footsteps of shaitan always ends in greediness which leads to destruction.
never there was miracles. only blind faith. Ya Allah give them Hidayat
hahaha.. this is hilarious headline. article is balances. very much timely. appreciate this impartial analysis by CD. keep it up. dont care anyone.
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