Vedanta Share Price Slides Further: CEO Exit and Viceroy Allegations Shake Investor Sentiment

Market Performance

The Vedanta share price declined for the second consecutive session on Thursday, July 10, slipping 1.5% to ₹433.35 per share.

• In the previous session, the stock had already plunged 3.5%, marking its worst intraday drop in three months.
• Vedanta shares are currently trading 18% below their all-time high of ₹523.65, recorded in September 2024.
• The stock has remained volatile for nine months, closing in the red for six out of those nine months.
• After a 17% gain in March, the share price returned to negative territory, logging losses for the next two months.

Main News

The latest drop in Vedanta share price comes amid heightened investor concern triggered by two significant developments:

1. Viceroy Research Report
   • U.S.-based short-seller Viceroy Research released an 87-page report on July 9.
   • The report alleged that Vedanta Resources is draining Vedanta Ltd. to manage its debt.
   • It claimed that Vedanta is being pressured to increase debt, deplete its cash reserves, and weaken its fundamentals, which are key to Vedanta Resources' creditors.
2. Top Executive Exit
   • Shortly after the report was released, Chris Griffith, President of Vedanta's International Business, left the company.
   • Griffith joined Vedanta in 2023 and managed critical base metal operations in South Africa and Namibia.
   • No official replacement has been announced, according to sources cited by Bloomberg.

Company Details

In response to the allegations:

• Vedanta issued a statement rejecting the report as a "malicious combination of selective misinformation and baseless allegations."
• The company emphasized that the timing of the report was intended to disrupt upcoming corporate actions.
• Vedanta reaffirmed its focus on long-term growth and business continuity despite the market pressure.

Additionally:

• In 2023, Chairman Anil Agarwal introduced a restructuring plan after an unsuccessful bid to take Vedanta private in 2020.
• Vedanta Resources Limited (VRL) announced in June 2024 its intention to reduce debt by $3 billion over three years.

Summary

Vedanta share price remains under pressure, extending losses for the second straight session amid turbulence caused by:

• Allegations from Viceroy Research about financial mismanagement
• The departure of a top executive, intensifying investor uncertainty

With the stock 18% below its all-time high and exhibiting volatile performance over the past nine months, market sentiment remains cautious.

Vedanta has dismissed the allegations and reaffirmed its commitment to business operations. However, the market response indicates that investor trust may take time to recover as scrutiny builds around the company's financial structure and leadership stability.