- Tuesday, April 16, 2024
By: Radhakrishna N S
IN a fresh blow to India-born and UAE-based business tycoon BR Shetty, London listed Finablr said that its money reserves were drying up alarmingly.
The latest blow has come when his Dubai-based NMC Health reported itself over suspected fraud.
The FTSE 250-listed currency exchange firm Finablr has said that it is moving ahead with its plans to assess its cash position.
The decision to assess its cash reserves has come following a squeeze partly due to the coronavirus outbreak as fewer families are visiting foreign countries.
Shetty’s Finablr, where he has a 63 per cent stake, also said it will appoint an adviser to weigh options as shares moved down 68 per cent.
The company’s shares tanked 80 per cent to 4.5p and are down almost 98 per cent since December.
Finablr has been badly hit by a number of issues recently, which include a hacking attack that forced it to move offline for weeks and a fall in demand for its service due to coronavirus.
The current coronavirus outbreak has forced people to restrict their travel plans
Finablr also said it has been hit by concerns over the health of NMC. It noted: “Adverse perceptions in the market that the circumstances surrounding NMC Health… have exacerbated current levels of stress on (Finablr’s) cashflow position.”
The financial services holding company noted that it had not found issues in NMC, which include undisclosed transactions. However, it said it will commission an independent probe to further reassure the proper functioning of the board and investors.
The former blue-chip company, NMC, earlier said that its advisers had discovered potential fallacious behaviour. Earlier, it also announced it had uncovered £2.1 billion of secret loans on its books.
Shetty’s health group has informed the authorities in the UK, where it is listed on the stock market following the alleged fallacious activities.
An internal investigation in the healthcare giant reported a complex web of lending and massive confusion over who owned its shares.
Shetty’s stake in the company is reportedly far lower than previously reported to the market.
Its shares were suspended after a collapse which relegated the company from the FTSE 100 index.
NMC on Tuesday (10) reported an extra $2.7bn of borrowing — more than doubling the size of its debts.
