Vedanta Ltd.'s Financial Turmoil: Accusations and Market Impacts
Shares of Vedanta Ltd fell nearly 8% after US short-seller Viceroy Research claimed the group's financial operations posed significant risks. The report accused the mining conglomerate, led by billionaire Anil Agarwal, of being unsustainable, which Vedanta refuted as false propaganda aimed at manipulating markets.
- Country:
- India
Vedanta Ltd.'s shares plunged by nearly 8% following a report by the US short-seller Viceroy Research, labeling the mining conglomerate, led by Anil Agarwal, as 'financially unsustainable'. At the BSE, the stock dropped by 7.71% to Rs 421, while at the NSE, it plummeted by 7.81% to Rs 420.65.
Viceroy Research released an 85-page report detailing their decision to short Vedanta Resources' debt, highlighting potential severe risks to creditors. The practice of shorting debt involves profiting from a decline in bond prices by selling borrowed bonds and buying them back later at a lower cost.
Vedanta Ltd. dismissed the report as a carefully curated mix of misinformation designed to create hysteria and manipulation of the market. They criticized the report for lacking a balanced inquiry, accusing its authors of sensationalizing facts already within the public domain.
(With inputs from agencies.)
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