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Vedanta, HZL shares fall up to 8% after short-seller alleges 'material discrepancies' in financialsViceroy has written in its note that it is short on the debt stack of Vedanta Resources, the parent company of Vedanta Ltd.By Hormaz Fatakia   July 9, 2025, 1:00:02 PM IST (Updated)2 Min ReadShares of Anil Agarwal-owned mining conglomerate Vedanta Ltd. and its subsidiary Hindustan Zinc Ltd. fell as much as 7% on Wednesday, July 9, after a short-seller, by the name of Viceroy Research has alleged material discrepancies in the group's financials.

Shares of Vedanta fell as much as 7.4% before recouping some of those losses, while those of Hindustan Zinc are down 2.8%.

Viceroy has written in its note that it is short on the debt stack of Vedanta Resources, the parent company of Vedanta Ltd.

"The entire group structure is financially unsustainable, operationally compromised and poses a severe, under-appreciated risk to creditors," Viceroy's note said.

Vedanta's interest expenses vastly exceed its reported note rates, ad continues to increase despite paydowns and restructuring, according to the Viceroy note, which further stated that expenses across operating subsidiaries are systematically capitalised, artificially inflating profits and asset values. "This is a material misrepresentation," the note said.

Some other points that Viceroy Research highlights in its 87-page note:

Vedanta Ltd. has accrued $5.6 billion free cash flow shortfall against dividends over the last three years.

Vedanta's net debt, including the working capital items, has increased by $6.7 billion since financial year 2022.

Vedanta Ltd. has depleted its cash reserves and exhausted its ability to borrow money and liquidate working capital items.

CNBC-TV18 had reached out to Vedanta and is awaiting a response.

Vedanta is currently undergoing a demerger of the existing listed company into five different entities and shareholders will be entitled to receive one share of every demerged entity for every one share of the currently listed company they own.

During a recent hearing at the National Company Law Tribunal, the Petroleum Ministry sought more time to share its observations with regards to the ongoing demerger process. The demerger has already received a no-objection certificate from the NSE. NCLT will resume hearing the matter on August 20.

The management intends to complete the demerger process by September-end, after having extended its deadline once before from March 2025.

Shares of Vedanta are currently trading 4.4% lower at ₹436.35, while those of Hindustan Zinc are trading 2.7% lower at ₹424.55.Continue ReadingFirst Published: Jul 9, 2025 12:17 PM ISTCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsHindustan Zincshare market todayVedanta Share PriceVedanta shares