Vedanta Shares Fall After U.S. Short-Seller Report

Dow Jones2025-07-09

By Kimberley Kao

Shares of Vedanta dropped after a report by short seller Viceroy Research took aim at the Indian mining-to-oil conglomerate's parent company.

In the report published Wednesday, Viceroy said it is taking a short position against the debt of U.K.-based Vedanta Resources, alleging that the company is "systematically draining" its Indian unit.

Mumbai-listed Vedanta fell as much as 7.7% before paring losses to close 3.4% lower. Shares of Vedanta subsidiary Hindustan Zinc fell 2.6%.

"The entire group structure is financially unsustainable, operationally compromised, and poses a severe, under-appreciated risk to creditors," Viceroy said in the report, pushing it "to the brink of insolvency".

Vedanta called the report a "malicious combination of selective misinformation and baseless allegation."

The natural-resources giant said in a statement that the report may have been timed to undermine coming corporate initiatives, and that it remains focused on its business and growth.

U.S.-based Viceroy said its investigation uncovered discrepancies in the group's financials, calling Vedanta Resources "a financial zombie being kept alive by transfusions of cash from its subsidiary."

In its 2024 annual report, Vedanta Chairman Anil Agarwal said the Indian company plans to deleverage its parent by $3 billion over the next three years.

Vedanta Resources had about $4.9 billion in gross interest-bearing liabilities as of March 31, according to the Viceroy report.

Write to Kimberley Kao at kimberley.kao@wsj.com

(END) Dow Jones Newswires

July 09, 2025 07:13 ET (11:13 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.

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Shares of Vedanta subsidiary Hindustan Zinc fell 2.6%. \n\n\n  \"The entire group structure is financially unsustainable, operationally compromised, and poses a severe, under-appreciated risk to creditors,\" Viceroy said in the report, pushing it \"to the brink of insolvency\". \n\n\n  Vedanta called the report a \"malicious combination of selective misinformation and baseless allegation.\" \n\n\n  The natural-resources giant said in a statement that the report may have been timed to undermine coming corporate initiatives, and that it remains focused on its business and growth. \n\n\n  U.S.-based Viceroy said its investigation uncovered discrepancies in the group's financials, calling Vedanta Resources \"a financial zombie being kept alive by transfusions of cash from its subsidiary.\" \n\n\n  In its 2024 annual report, Vedanta Chairman Anil Agarwal said the Indian company plans to deleverage its parent by $3 billion over the next three years. \n\n\n  Vedanta Resources had about $4.9 billion in gross interest-bearing liabilities as of March 31, according to the Viceroy report. \n\n\n \n\n\n  Write to Kimberley Kao at kimberley.kao@wsj.com \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  July 09, 2025 07:13 ET (11:13 GMT)\n\n\n  Copyright (c) 2025 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":true,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.36.0","shortVersion":"4.36.0","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2550311866","isCrawlerRequest":true}