Mumbai, July 9, 2025 – The Vedanta share price witnessed significant intraday volatility on Tuesday following the release of a scathing report by US-based short-seller Viceroy Research, which raised serious concerns about the financial sustainability of Vedanta Resources, the UK-based parent company of Vedanta Ltd.
The stock, listed on the NSE under the ticker VEDL, opened weak and declined sharply in morning trade, hitting a low of ₹420.65, before partially recovering to close near ₹440, down nearly 3.5% on the day.
What Triggered the Decline in Vedanta Share Price?
According to Viceroy Research, Vedanta Resources is allegedly operating under a “financially unsustainable” model, relying heavily on aggressive dividend payouts from its Indian subsidiary to service mounting debt obligations.
The report described the structure as a “Ponzi-like mechanism”, citing a projected $5.6 billion cash flow gap and over ₹75,000 crore in dividends paid over the last five years, raising questions about the parent’s ability to meet long-term liabilities.
These allegations led to panic selling early in the session, dragging the Vedanta share price down by as much as 8%, before bargain buying limited the damage.
Company Response: Denial and Reassurance
In response, Vedanta Ltd issued a formal statement denying the claims, calling the Viceroy Research report “baseless, misleading, and defamatory”. The company reiterated its commitment to ongoing business restructuring, with a strategic focus on demerging core businesses and reducing group-level debt by $3 billion over the next three years.
The management also assured stakeholders that all dividend declarations and capital allocations are in line with applicable governance norms and financial prudence.
Technical & Market Outlook
Technical analysts suggest that the ₹420–₹425 range now acts as a crucial support level. A breach below this could expose the stock to further downside towards ₹400. Conversely, a sustained recovery above ₹450 may restore bullish momentum in the near term.
Despite Tuesday’s weakness, analysts remain largely positive on Vedanta’s long-term outlook, citing its strong operating cash flows, diversified metals portfolio, and a high dividend yield of nearly 10%.
Broader Implications
This episode underscores the increasing influence of global short sellers on Indian capital markets, especially in the backdrop of rising investor sensitivity to corporate governance, debt transparency, and capital structure risks. With memories of past corporate defaults still fresh, reports like Viceroy’s carry significant weight and often result in short-term price corrections.
Vedanta Share Price Performance Snapshot
| Metric | Value |
|---|---|
| Current Market Price | ₹440.10 |
| Intraday Low | ₹420.65 |
| % Change Today | -3.48% |
| 52-Week High / Low | ₹471 / ₹265 |
| Dividend Yield | ~9.8% |
| P/E Ratio | 11.5x |
| 12-Month Analyst Target | ₹520 (Estimated Avg) |
Conclusion
The sudden drop in Vedanta share price today highlights the delicate balance between investor confidence and corporate structure integrity. While the management’s response may offer some reassurance, the near-term movement of Vedanta’s stock will likely depend on clarity regarding the group’s debt strategy and the outcome of independent assessments of the allegations.
Investors are advised to stay vigilant and monitor any further regulatory disclosures, as the fallout from the Viceroy report continues to evolve.
