Shares of Vedanta Ltd witnessed a sharp decline in trading on Wednesday following a controversial report by US-based short-seller Viceroy Research. The report alleged serious financial irregularities, comparing the conglomerate’s funding model to that of a “Ponzi scheme”, sending shockwaves through the Indian markets.
The 87-page report, titled “Limited Resources”, accused Vedanta’s parent group of creating “a severe, under-appreciated risk to creditors” through what it describes as questionable and unsustainable financial practices. It cited “material discrepancies” in the company’s books and raised concerns over its complex corporate structure and alleged lack of transparency.
Following the report’s release, Vedanta’s stock plunged up to 7.72%, hitting an intraday low of ₹421, before recovering slightly to trade 3.50% lower at ₹440.25 on the NSE.
However, Vedanta Ltd has strongly denied the allegations, stating that the report is “false, misleading, and designed to distort public perception.” The company emphasized its commitment to high standards of corporate governance, financial integrity, and regulatory compliance.
This development comes at a time when Vedanta is undergoing major business restructuring and dealing with high levels of debt. Market analysts are closely watching the situation, as investor confidence may be impacted in the short term, depending on how the company manages the fallout and provides clarifications to the market.
Key Highlights:
- Vedanta shares fell up to 7.72% after the release of the report.
- Viceroy Research alleges a “Ponzi-like” funding model in an 87-page analysis.
- Vedanta categorically rejects all claims, calling them baseless and misleading.
- The report raises broader concerns over corporate governance and transparency.
As the story unfolds, investors and stakeholders will be keenly awaiting further clarifications from Vedanta as well as any potential regulatory response.
