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Vedanta shares plunge amid Viceroy's shorting
Vedanta Ltd's stock dropped 4.5% on Wednesday after Viceroy Research called its parent, Vedanta Resources, "financially unsustainable" and even compared its setup to a Ponzi scheme.
Investor confidence can shift quickly
This sharp fall shows how quickly investor confidence can shift when big questions are raised about a company's finances.
If you follow stocks or business news, it's a reminder that reports like these can have real impact—especially when debt and risk are involved.
Vedanta Resources described as 'parasite' company
Viceroy described Vedanta Resources as a "parasite" company that depends heavily on cash from Vedanta Ltd.
While the group has cut its net debt significantly in recent years, the report still questions whether this approach is sustainable for the long haul.