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Viceroy terms Vedanta Resources a “parasite”, propped up by “dying host” Vedanta
- IBJ Bureau
- Jul 10, 2025
A US short-seller, Viceroy Research, has flung allegations at Anil Agarwal-owned Vedanta Group, calling Vedanta Resources (VRL) a “parasite” and a “financial zombie” and its listed subsidiary Vedanta (VEDL) a “dying host”.
Viceroy Research, which has a short position on VRL’s debt stack, has said that the Vedanta Group structure was “financially unsustainable, operationally compromised” and was a “severe, under-appreciated risk to creditors”.
“VRL is a ‘parasite’ holding company with no significant operations of its own, propped up entirely by cash extracted from its dying ‘host’: VEDL,” it has added.
VRL and its web of intermediate holding companies held no material operating assets and carried about $4.9 billion in gross interest-bearing liabilities as of FY25, the report has said. The survival of VRL depends on its ability to extract cash from publicly-listed VEDL, which holds stakes in group companies, including Hindustan Zinc and BALCO, it adds.
The upstreaming process was inefficient because a significant portion of dividends issued leaks to minority shareholders, as VRL holds only 56 per cent of Vedanta and 62 per cent of Hindustan Zinc. Among other allegations, the report has said that VRL has extracted $338 million as “brand fee” annually from VEDL and its subsidiaries in FY24 alone.
VRL has used loans from VEDL subsidiaries to purchase VEDL stock on-market, but over $122 million of VEDL loans were “written off” in a blatant violation of the Companies Act, it has added.
Following the 87-page report, shares of Vedanta and Hindustan Zinc slipped by 3 per cent each to Rs 441 and Rs 425 respectively on Wednesday.
The Vedanta Group has dismissed Viceroy Research’s report as “a malicious combination of selective misinformation and baseless allegations to discredit the group”.
The release of the Viceroy report came just a day before VEDL’s annual general meeting (AGM).
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