Shares of Vedanta fell as much as 7.4% before recouping some of those losses, while those of Hindustan Zinc are down 2.8%.
Viceroy has written in its note that it is short on the debt stack of Vedanta Resources, the parent company of Vedanta Ltd.
“The entire group structure is financially unsustainable, operationally compromised and poses a severe, under-appreciated risk to creditors,” Viceroy’s note said.
Vedanta’s interest expenses vastly exceed its reported note rates, ad continues to increase despite paydowns and restructuring, according to the Viceroy note, which further stated that expenses across operating subsidiaries are systematically capitalised, artificially inflating profits and asset values. “This is a material misrepresentation,” the note said.
CNBC-TV18 had reached out to Vedanta and is awaiting a response.
Vedanta is currently undergoing a demerger of the existing listed company into five different entities and shareholders will be entitled to receive one share of every demerged entity for every one share of the currently listed company they own.
During a recent hearing at the National Company Law Tribunal, the Petroleum Ministry sought more time to share its observations with regards to the ongoing demerger process. The demerger has already received a no-objection certificate from the NSE. NCLT will resume hearing the matter on August 20.
The management intends to complete the demerger process by September-end, after having extended its deadline once before from March 2025.
Shares of Vedanta are currently trading 4.4% lower at ₹436.35, while those of Hindustan Zinc are trading 2.7% lower at ₹424.55.
This is a developing breaking story and will be updated with more details.
First Published:Â Jul 9, 2025 12:17 PM IST
