July 9, 2025 – A U.S.-based firm called Viceroy Research has recently released a report targeting Vedanta Resources, the parent company of India’s Vedanta Ltd. This 87-page report makes several serious claims about the financial health of Vedanta’s business model.
What Viceroy Research Claims
Viceroy says that Vedanta Resources has a huge amount of debt and depends heavily on its Indian unit, Vedanta Ltd, for cash.
It claims that Vedanta Resources is taking large amounts of cash from Vedanta Ltd, mainly through dividends, to repay its own loans.
The report compares Vedanta’s financial structure to a “Ponzi scheme”, saying the current setup is not sustainable.
It also raises concerns about overvalued assets and possible irregularities in financial reporting.
Impact on the Market
After the report was published, shares of Vedanta Ltd dropped by nearly 8% in early trading. However, the stock recovered slightly later in the day.
How Vedanta Responded
Vedanta called the report false and misleading. The company stated that it remains financially strong and is moving ahead with its business plans, including reducing debt and restructuring its group through a planned demerger.
Who Is Viceroy Research
Viceroy Research was founded in 2016 by Fraser John Perring and two others.
It is based in the U.S. and is known for publishing detailed reports about companies it believes are overvalued or financially weak.
In the past, Viceroy has reported on companies such as Wirecard, AMD, and Capitec Bank.
So far, it has released more than 180 reports on over 30 companies worldwide.
What’s Next
Vedanta is continuing with its planned demerger, which aims to separate its different businesses into individual units.
Investors and regulators will be watching the situation closely.
More updates may come in the following weeks or months.
Summary
Viceroy Research has raised serious questions about Vedanta Resources’ financial practices. While the report affected market sentiment, Vedanta has strongly denied the claims and is focused on its long-term strategy. This situation remains important for investors to watch.
