Vedanta’s Share Price Drop Amid Viceroy Report Controversy

Shares of Vedanta Ltd plunged over 7% in early trade after a critical report by US-based Viceroy Research alleged "material discrepancies" in the company's financials and operations, including inflated asset valuations, capex fraud, governance lapses, and a 'Ponzi-like' funding model. The report accused the Vedanta Group of shuffling capital between subsidiaries to create a false impression of liquidity. In response, Vedanta strongly denied the allegations, calling the report a "malicious combination of selective misinformation" and stated it was issued without seeking clarification from the company. It also noted that the report is for educational purposes only and contains no verified facts. The controversy comes as Vedanta navigates a major demerger plan, approved by shareholders and creditors, to split into five listed entities—Vedanta Aluminium Metal, Vedanta Power, Vedanta Oil & Gas, and Vedanta Iron and Steel—alongside the existing core entity. Despite mixed Q1FY26 operational results, with record alumina production and a sharp rise in ferro chrome output, the stock remains under pressure amid regulatory uncertainty and investor concerns over corporate governance and debt management.