Vedanta shares fall 8% after US short-seller report
New Delhi
US-based short seller Viceroy Research has accused Anil Agarwal’s Vedanta Group of being financially unsustainable and posing serious risk to creditors. In an 85-page report, Viceroy claimed it is shorting Vedanta Resources’ debt and described the parent firm as a zombie company dependent on cash from its listed subsidiary, Vedanta Ltd.
The report alleged Vedanta is draining its operating arm to repay its own debt, compromising long-term value. It also pointed to inflated asset values, misrepresented interest costs, and questionable governance, comparing the structure to a Ponzi scheme.
Vedanta denied all claims, calling them selective misinformation and baseless allegations designed to manipulate market reactions. It said no attempt was made to seek their input, and that the report misuses public information to create false narratives. Shares fell nearly 6% before recovering slightly.
Viceroy, echoing the short-selling strategy used by Hindenburg Research against the Adani Group in 2023, said it stands by its findings and welcomed questions. The report’s timing, just before Vedanta’s annual general meeting, was flagged by the company as suspicious.
Vedanta also highlighted that the report included legal disclaimers stating it reflects opinion, not verified facts. The company urged stakeholders to avoid speculation and remain focused on its growth and business fundamentals.
Meanwhile, Viceroy doubled down, saying Vedanta’s rebuttal failed to challenge the actual findings, instead focusing on legal disclaimers. The short seller warned that without structural changes, the group risks insolvency, driven by mounting debt and financial mismanagement.
BOX
Vedanta Ltd shares fell nearly 8% on Wednesday after US-based Viceroy Research claimed the group’s financial structure was unsustainable and risky for creditors. The stock later recovered, trading 3.31% lower at ₹441.10. Vedanta dismissed the 85-page report as false and misleading, accusing Viceroy of spreading selective public information to influence market sentiment.
