Vedanta Share Price in Focus After Viceroy Allegations: What Investors Must Know
Vedanta Limited (NSE: VEDL, BSE: 500295) is back in the headlines — and not for the right reasons. US-based short-seller Viceroy Research has accused the company’s parent, Vedanta Resources Ltd (VRL), of being "financially unsustainable," triggering a fresh debate on the stock’s future and causing ripples across Dalal Street.
As per the latest report, Viceroy has shorted Vedanta’s debt and released an 85+ page report alleging a number of financial red flags, ranging from aggressive dividend payouts funded by debt to off-book liabilities, improper loans, and a parasitic corporate structure that may threaten long-term investors.
Vedanta Share Price Reaction
Following the report's release, Vedanta share price dropped by nearly 6% during intraday trading on the BSE, hitting a low of ₹428. The stock later recovered slightly and was last seen trading at ₹440.05, down 3.54% from the previous close.
Search trends reveal a spike in queries like “vedanta share price today,” “vedanta limited share price,” “vedanta dividend,” “sesa goa share price,” and “vedanta share price NSE/BSE.”
Why Viceroy Is Targeting Vedanta
According to Viceroy’s scathing analysis, the crux of the problem lies in the capital structure:
- VRL holds over 56% in VEDL, yet has no major operations of its own.
- It survives on cash flows diverted from Vedanta Limited to service its $13 billion+ debt.
- This has led to an estimated $5.8 billion cash flow shortfall over the last 3 years against dividends paid.
- Such aggressive payouts have increased VEDL’s net debt from $4.2B (2021) to $8.1B (2025).
- Cash reserves have fallen sharply — from $2.3B to just $944 million in 2025.
Key Figures from Viceroy Report (2021–2025):
| Year | Net Profit (₹ Cr) | Cash Flow (₹ Cr) | Dividend (₹ Cr) | Net Debt (₹ Cr) | Interest Rate (%) |
|---|---|---|---|---|---|
| 2021 | 2,318 | 2,509 | -474 | 4,159 | 10.8% |
| 2022 | 4,407 | 3,969 | -2,230 | 4,066 | 7.8% |
| 2023 | 2,527 | 3,431 | -3,733 | 6,562 | 8.5% |
| 2024 | 2,460 | 3,120 | -2,244 | 8,174 | 12.3% |
| 2025 | 3,213 | 3,479 | -2,005 | 8,136 | 12.7% |
Accusations of Fraud and Governance Lapses
Viceroy’s report levels several allegations that could spook long-term investors:
- Dividend payments financed via fresh debt issuances.
- Undisclosed off-balance-sheet liabilities.
- Accounting tricks to overstate asset values.
- Loans allegedly used to buy back promoter shares — potentially violating Section 67(2) of the Companies Act.
- Delayed repayment of loans and poor auditor choices.
Viceroy labeled VRL as a “financial zombie” sustained only by VEDL’s cash flows. It even compared the setup to a “Ponzi scheme,” with VEDL shareholders being the eventual losers.
Vedanta’s Response: Strong Denial
Vedanta, in a detailed media statement, called the report a "malicious combination of selective misinformation and baseless allegations." The company claimed the report was meant to "create false propaganda" and discredit the group just before its Annual General Meeting (AGM).
Vedanta emphasized that no effort was made by Viceroy to seek clarification before publishing the report. The group asserted that all the data quoted is already in the public domain but presented out of context.
What This Means for Vedanta Shareholders
The timing of this report, right before a crucial AGM and at a time when Vedanta is preparing for a demerger of its businesses, raises questions. While Viceroy has published similar damaging reports on companies like Wirecard and Truecaller, the similarity to the Adani-Hindenburg episode is hard to miss.
Despite all the noise, Vedanta shares have shown only a moderate fall, indicating that markets may be taking the claims with a pinch of salt. That said, investors must monitor developments, especially regarding:
- The progress of Vedanta’s demerger and its impact on minority shareholders.
- Responses from regulators like SEBI and the Ministry of Corporate Affairs.
- Any further revelations from Viceroy, who hinted at "more to come."
Should You Buy Vedanta Shares Now?
With keywords like “vedanta share price NSE,” “vedanta share price BSE,” “sesa goa share price,” and “vedanta dividend” trending, there’s clearly renewed interest in the stock.
But caution is key. Investors should wait for clarity on the company’s governance, financial health, and regulatory responses before making fresh positions. Vedanta remains a high-risk, high-reward bet, and it's best suited for seasoned investors with a long-term horizon.
Final Word
The Vedanta-Viceroy face-off is a stark reminder of the importance of corporate transparency. While Vedanta has denied all allegations, Viceroy’s detailed claims warrant close scrutiny. Investors must stay informed, diversify wisely, and keep emotions at bay amid market volatility.
Disclaimer: This blog is for informational purposes only. Please consult your financial advisor before making any investment decisions.
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