Vedanta Share Price Tanks 8% After Scathing Viceroy Report: What You Need to Know

Market Performance

• The Vedanta share price plunged nearly 8% in intraday trading on Wednesday, July 9, reaching a low of ₹420.65 on the NSE.
• With this drop, the stock has recorded a 6.67% decline in 2025 so far.
• Shares of Hindustan Zinc Limited (HZL), a subsidiary of Vedanta, also saw a steep fall of 5%, hitting a day's low of ₹415.15.
• HZL shares have declined 37% over the past year and 19% in the last month alone.

Main News

The sharp decline in Vedanta share price came immediately after a  report from Viceroy Research, which flagged significant financial red flags within the group.

Key Allegations by Viceroy Research:

• Described Vedanta Resources Ltd (VRL), Vedanta's parent company, as a "financial zombie" and a "parasite" draining its subsidiary's resources.
• Accused VRL of pressuring Vedanta to:
  • Take on more debt
  • Exhaust its cash reserves.
• Stated the actions have pushed the group towards insolvency, masked by:
  • Continuous cycles of new debt
  • Accounting manipulations
  • Delayed recognition of massive undisclosed liabilities
• Claimed that the group's operating subsidiaries show:
  • Inflated asset values
  • Cross-collateralised debt
  • Systematic capitalisation of expenses, misleading the profitability picture.

The report concluded that these financial maneuvers may amount to fraud and labeled the structure a risk to creditors.

Company Details

In a prompt response, Vedanta Limited issued a strong rebuttal to the claims made in the Viceroy report.

Company's Official Response:

• Called the report a "malicious mix of misinformation and baseless allegations."
• Accused the authors of:
  • Failing to contact the company
  • Spreading false propaganda
• Pointed out that the report:
  • Merely compiles public domain data.
  • Uses sensationalism to manipulate market sentiment
• Highlighted that Viceroy included disclaimers suggesting the report was meant only for educational purposes and expressed opinions, not facts.
• Urged the public to avoid speculation and unsubstantiated claims and reiterated the company's focus on business and growth.

Summary of the Article

• On July 9, Vedanta's share price plummeted 8%, reacting sharply to a report by Viceroy Research.
• The report alleged unsustainable financial practices and governance lapses within the Vedanta Group.
• It accused Vedanta Resources Ltd of draining Vedanta's resources to service its debts.
• Vedanta dismissed the claims, labeling them baseless and malicious, and questioned the intent and timing of the report.
• The incident also impacted Hindustan Zinc, which fell 5% on the same day.