Vedanta drops 3% after the American short -seller calls the ‘house of cards’ back, firm hits back – Times of India

Mumbai: In A Move Reminiscent of Hindenburg Going Short On Adani Group, US-Based Financial Researcher Viceroy Research Said Wednesday It was “Shorting” The Debt Stack of Metal Tycoon Anil Agarwal-Controlled Parentes, Aspased. Believes the Entire Group Structure is ‘Financally Unsustainable’, OperationaleCoMed, ‘A House of Cards’, poses Severe risks for creditors, and ‘looks like a ponzi schedule’. The 87 -page Viceroy report appeared on Thursday at the annual shareholders’ meeting of Vedanta. The company rejected the report as “a malignant combination of selective wrong information and unfounded allegations.” The stock price of Vedanta on BSE crashed almost 8% in the mid session to a low point of RS 421, but then recovered slowly to close with RS 441, a decrease of 3.4%.The stock of the subsidiary of Vedanta Hindustan Zink also saw a similar trend: in the mid -session it crashed almost 5% to RS 415 and then recovered some land against the end of the session to finally settle on RS 425, a decrease of 2.6%. Rew for a correction in the prices of the effects of the company, said Viceroy’s report: “Our thesis is based on a simple but critical dynamic: Vedanta Resources is a ‘parasite’ holding company without its own important activities, fully piled up by cash that has been hosted from his dying ‘host’.” This, Viceroy added, forced the Indian company to increase leverage and to exhaust its cash reserves. “This looting affects the fundamental value of Vedanta, which forms the primary collateral for its own creditors of Vedanta Resources.”

Vedanta responded and said that “the timing of the report is suspected and could be to undermine the coming business initiatives”. Vedanta is busy taking its companies such as aluminum, oil and gas, electricity and basic metals in individual listed companies. The Demerger has hit a legal roadblock with the Ministry of Petroleum and Natural Gas that increases objections. Anil Agarwal and his family have a interest of around 56% in Vedanta. A few days ago, Vedanta Resources announced the release of all dedicated Vedanta shares after full repayment of the Loan of $ 200 million Canara Bank (London Branch). Viceroy criticized Vedanta’s proposal, initiated after a failed attempt to take the Indian company private five years ago. From March 31, 2025, the independent net debt of Vedanta Resources was around $ 5 billion. Delaware-registered vicers said that Vedanta Resources is a financial zombie that is kept alive by transfusions of cash money from Vedanta. “The short thesis is not death due to a thousand cuts: one of the multitude of risks we outline is enough to overthrow the already fragile, ponzi-like structure of Vedanta.”