Finance
Viceroy Research takes short position on Vedanta Resources' debt
Published by Global Banking & Finance Review®
Posted on July 9, 2025
2 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on July 9, 2025
2 min readLast updated: January 23, 2026
Viceroy Research shorts Vedanta Resources' debt, citing financial risks. Vedanta plans restructuring to cut $3 billion in debt by 2027.
(Reuters) -U.S.-based Viceroy Research has taken a short position against the debt of Vedanta Resources, the UK-based parent of Indian miner Vedanta, alleging that the British firm is "systematically draining" its Indian unit.
The report comes as Vedanta plans to split into multiple separate listed entities. Group Chairman Anil Agarwal launched the plan in 2023 to overhaul the business following an unsuccessful attempt to take Vedanta private in 2020.
Vedanta Resources said in June 2024 that it will seek to cut its debt pile by $3 billion in the following three years.
"The entire group structure is financially unsustainable, operationally compromised, and poses a severe, under-appreciated risk to creditors," short seller Viceroy Research said, adding that its investigation had uncovered material quantitative and qualitative discrepancies.
The Vedanta Group did not immediately respond to a Reuters request for comment on the Viceroy Research report.
Shares of the Indian miner fell as much as 7.8% after the report, before trimming some losses to trade 4.8% lower by 0723 GMT. The shares were down roughly 1% before the report.
As of March 31, 2025, Vedanta Resources' net debt on a standalone basis stood at $4.9 billion, according to its annual report.
(Reporting by Hritam Mukherjee, Chandini Monnappa and Kashish Tandon in Bengaluru; Editing by Mrigank Dhaniwala)
Viceroy Research has taken a short position against the debt of Vedanta Resources, claiming that the company's structure is financially unsustainable.
Vedanta Resources plans to cut its debt by $3 billion over the next three years, as stated in their June 2024 announcement.
Following the report, shares of Vedanta fell as much as 7.8% before recovering slightly to trade 4.8% lower.
Viceroy Research described Vedanta's group structure as posing a severe, under-appreciated risk to creditors, highlighting operational compromises.
As of March 31, 2025, Vedanta Resources reported a net debt of $4.9 billion on a standalone basis.
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