Vedanta Shares Hit By Explosive Report From American Short-Seller Viceroy Research

Vedanta shares plunged nearly 8% after US-based short-seller Viceroy Research accused the group of running a Ponzi-like financial structure. The explosive 87-page report calls Vedanta Resources Ltd. a “parasite” draining cash from Vedanta Ltd. to survive. It alleges inflated assets, governance failures, and hidden debt. Viceroy flagged unaffordable projects, misleading interest rates, and auditing lapses, warning that Vedanta is on the verge of insolvency. Vedanta has dismissed the report as malicious and baseless propaganda aimed at creating panic. Despite the damage, both stocks have shown signs of recovery post-Vedanta's clarification. Analyst Sharad Avasthi, Head of Research (PCG), SMIFS say this news may not bring fresh unknowns to the table but could open short-term opportunities for long-term investors amid an already cooling metal cycle. Listen in