Vedanta Stock Holds Firm Despite Explosive Viceroy Report Alleging Debt Manipulation

Vedanta Limited (NSE: VEDL) is under fire again. This time, it’s not just market whispers. U.S.-based activist short seller Viceroy Research has dropped an 87-page bombshell report accusing the group of “circular capital flows,” opaque balance sheet tactics, and masking critical debt obligations.

But here’s the twist: the stock barely flinched.

Trading around ₹442 as of Friday morning, Vedanta is down less than 2%, surprisingly muted for a company facing claims of what Viceroy calls “India’s Enron playbook.”

Viceroy Research Report on Vedanta: Key Allegations

Viceroy, led by Gabriel Bernarde, alleges that Vedanta is essentially using its profitable Indian-listed unit as a debt-repayment vehicle to prop up its unlisted parent entities. The report highlights:

• Intercompany loans routed through layers of subsidiaries
• Legal exposure and contingent liabilities running into billions
• Dubious capital allocation moves that may hurt minority shareholders

Perhaps most damning, the report implies that Vedanta’s recent dividend strategy isn’t shareholder reward, it’s survival.

This is not a mining company. It’s a financing shell masquerading as a commodity giant.

the report says.

Vedanta Share Price Reaction: Why Isn’t the Market Panicking?

You’d expect a bloodbath. Instead, Vedanta shares dipped slightly on Thursday and are attempting to stabilize near ₹440.

There are three possible reasons:

1. Short Fatigue – This isn’t Vedanta’s first brush with controversy. From dividend scrambles to debt restructuring rumors, investors have heard worse.
2. Market Context – With the Nifty near all-time highs and metals stocks rebounding globally, investors may be choosing to “wait and see” rather than panic-sell.
3. Lack of Institutional Follow-through – So far, no major brokerage or global fund has backed Viceroy’s thesis. That silence speaks volumes, or suggests caution.

Vedanta Technical Analysis Today

• Current Price: ₹442.60
• Immediate Support: ₹420, then ₹388
• Resistance Zone: ₹470–₹480
• MACD: Bearish crossover, momentum stalling below zero

What’s Next for Vedanta Stock?

So far, Vedanta has not issued an official rebuttal, but silence can’t last forever. If the company pushes back with clarity and balance sheet transparency, shares could recover quickly. But if they fumble the messaging, the ₹400 floor could crack

Final Outlook: Should Investors Avoid Vedanta Now?

This isn’t a typical short attack. Viceroy’s report is comprehensive, loaded with forensic accounting claims and debt flow charts. Whether they’re right or not, the ball is now in Vedanta’s court.

For now, the stock remains on the tightrope. Not falling, but one bad headline away from doing so.

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