Latest news with #VedantaGroup
Hans India
18 hours ago
- Business
- Hans India
Viceroy Research says Vedanta Semiconductors a ‘sham' commodities trading operation
New Delhi: Firing fresh salvo at Anil Agarwal-run Vedanta Group, US short-seller firm Viceroy Research said in its latest report that Vedanta Semiconductors is a 'sham' commodities trading operation designed to improperly avoid classification as a non-banking financial company (NBFC). According to Viceroy, 'We believe that Vedanta Limited (VEDL) subsidiary, Vedanta Semiconductors Private Limited (VSPL), is a sham commodities trading operation designed to improperly avoid classification as a Non-Banking Financial Company (NBFC)'. In its report that came out on Friday (US time), the short-seller firm alleged that this scheme was devised to 'facilitate VEDL's remittance of brand fees to Vedanta Resource's (VRL) in April 2025, when it faced a severe liquidity crisis'. 'VSPL's operational illusion needs 24 months of regulatory silence to fulfil its purpose, repaying its offshore lenders and hiding the near-catastrophe of April 2024. While credit analysts are snoozing through the alarm bells, India's regulators are famously light sleepers,' the report claimed. The US-based short seller has been publishing a series of reports on the Vedanta Group for the last few days, alleging that Vedanta Resources, the holding company of Vedanta, is propped by cash entirely from its operating unit. Vedanta has denied all allegations so far, calling them 'baseless'. In its latest report, Viceroy said that in April 2024, Vedanta Limited (VEDL) faced a severe liquidity crisis. 'In response, VEDL reactivated VSPL, not as a semiconductor venture, but as a zero-margin trading entity whose operations appear to consist entirely of paper-based commodity trading,' the report alleged. 'VSPL tapped offshore lenders for a short-term, INR-denominated, 10 per cent NCDs secured by VEDL's stake in HZL (equivalent to 1 per cent of outstanding shares) VSPL then began trading commodities (copper, silver, gold) on a zero-margin basis reminiscent of wash trading. It remitted the loan to VEDL as a 24-month 12 per cent loan, with the spread intended to cover the sham operation's costs,' Viceroy Research said in its report. 'VSPL, superficially an operating entity, would face reduced scrutiny for loan repayments under FEMA, Companies Act, PMLA and AML frameworks. VSPL will likely have to continue these sham operations until FY27, when the loans fall due and repayment will have to be routed back through it. If at any point the regulators intervene at VSPL, the lender group is likely facing a total wipeout,' it further alleged. Earlier this week, Viceroy Research levelled fresh allegations against Vedanta Group, accusing the company's promoters of holding an undisclosed stake through a welfare trust to recycle funds. The company in question is PTC Cables Pvt. Ltd (PTCC), which holds a 1.91 per cent stake in Vedanta Ltd, that has a market cap of Rs 1.75 lakh crore. PTCC is owned by Bhadram Janhit Shalika Trust (BJST), which Viceroy alleges is controlled by the Agarwal family, founders of the Vedanta Group. However, the Vedanta Group has dismissed the allegations as 'baseless.'
Mint
20 hours ago
- Business
- Mint
Former chief justice of India Chandrachud says Viceroy report on Vedanta Group lacks credibility
New Delhi, Jul 19 (PTI) US short seller Viceroy Research's report on the Vedanta Group "lacks credibility" and the firm would be well-placed to seek legal remedies, former chief justice of India D Y Chandrachud has said. Justice Chandrachud's remark came after Vedanta sought an independent legal opinion from the former chief justice in relation to the allegations made in the Viceroy Research report, the company said in a regulatory filing on Friday. According to the filing, the former CJI has opined that "Viceroy has a track record of taking short positions in listed companies and then publishing misleading reports to profit unlawfully from the resulting market impact". The Viceroy Research's report on the company contains serious allegations, causing harm to the Vedanta Group's business and reputation, Justice Chandrachud said. "The report contains serious imputations such as "ponzi scheme" and "parasite", which have caused harm to querist's (Vedanta's) business and reputation," he said, adding, "in these circumstances, the querist would be well-placed to seek legal remedies." The US short seller in its July 9 report had called billionaire Anil Agarwal-led British firm Vedanta Resources a "parasite" that is "systematically draining" its Indian unit, an allegation which the group called as "selective misinformation and baseless" aimed at discrediting the firm. Viceroy Research took a short position against the debt of Vedanta Resources, the UK-based parent of Indian miner Vedanta Ltd, alleging that the group "is a house of cards built on a foundation of unsustainable debt, looted assets, and accounting fiction". Vedanta had responded, saying the report was "a malicious combination of selective misinformation and baseless allegations" and that its authors issued it without contacting the group.
Time of India
3 days ago
- Business
- Time of India
Waiting for Sebi response to queries on Vedanta, says US-based short seller Viceroy Research
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Overweight rating Mumbai: US-based short seller Viceroy Research , which has lately published a series of reports on Vedanta Group , said it awaits a response from the Securities and Exchange Board of India Sebi ) to its queries on the metals conglomerate that has lender support for its ongoing reorganization by revenue streams."It is an opportunity for SEBI to really raise their game, how they handle this," London-based Fraser Perring , co-founder of Viceroy Research, told research firm has reached out to Sebi through email, assuring the regulator of assistance in assessing the veracity of its reports that criticized Vedanta and its proposed restructuring along business said Viceroy is yet to receive a response from the regulator."In all fairness, we only reached out to them a few days away, and I suspect they've got to get clarity," Perring has steadfastly denied all allegations, and pointed to broader regulatory and investor support for its corporate actions aimed at unlocking value embedded in the operating this week, proxy advisory firm InGovern said that foreign research firms not registered with the market regulator can publish reports on Indian companies without being subject to Indian regulatory scrutiny."Even when their actions directly impact Indian investors and markets," InGovern said, in reference to the oversight latitude enjoyed by such foreign have been instances where offshore firms have released critical reports on securities in which they hold economic interest, but did not respond to regulatory summons or cooperate with Indian authorities, InGovern its report on Wednesday, Viceroy Research has claimed that the Agarwal family, promoters of the Vedanta Group, are enjoying financing at a non-arms length from Vedanta Ltd, and its government-backed subsidiaries using parallel operating structures outside of the group, such as Serentica US-based short-seller, which has published its fifth report on the group since last week, said that Vedanta, Hindustan Zinc and BALCO 's investments in Serentica are "effectively worthless", given the way the deals have been Renewables is a green energy company owned 65% by global investment firm KKR, and the rest by Twin Star Overseas, which is owned by the Agarwal Hindustan Zinc and BALCO invested in Optionally Convertible Redeemable Preference Shares (OCRPS) issued by Serentica, which offer negligible returns (0.0001% dividend annually) and no control or upside for 30 years. The firm has described these investments as financially unviable and had published its first report on the Vedanta Group last Wednesday, terming Vedanta Resources a 'parasite' holding company, which was supported entirely by cash from its operating company firm then published questions that shareholders of Vedanta must ask the management at their annual general meeting, following it up with an analysis of the AGM, which they termed as a staged Viceroy's first report last week, shares and bonds of Vedanta have not seen a significant movement, except for a knee-jerk reaction on the day the report was released."I don't expect or encourage anyone to just react to noise. We would expect them to fact check," Perring said. "Unlike normal short sellers that publish one report and run away, we put out key themes where people can find it themselves if they want to do the said that the company had a golden opportunity to start being transparent."They have refused and as such we are going to make sure that people have the information to either make them accountable or ignore it and let the looting continue."In a report released earlier this week, BofA Securities has maintained its 'overweight' rating for three bonds of Vedanta Resources Plc, while downgrading two of its bonds to 'marketweight'. The brokerage said that the company has reduced its debt, has lower repayments over the next three years helped by its recent refinancings, and has seen a moderation in its interest cost."We are OW VEDLN 28s/ 29s/31s as bonds look cheap compared to peers. MW on 30s/33s as we see more value in 29s/31s with higher yields and lower duration," it said.
India Gazette
11-07-2025
- Business
- India Gazette
India to manufacture rare earth magnets locally due to Chinese supply cut
New Delhi is introducing a $156 million-subsidy to assist domestic producers of the crucial component for the high-technology industry India is looking to manufacture rare earth magnets. A $156 million subsidy scheme has been introduced to domestic producers, the website Moneycontrol said on Friday. The South Asian nation possesses the world's third-largest reserves of rare earths, but less than 20% has been explored so far. "It is proposed that there will be two manufacturers as of now, but this could change by the time the scheme is ready," India's Minister of Heavy Industries and Steel has said, according to the website. An official at the ministry said the subsidy will be available to manufacturers that undertake end-to-end processing, from rare earth oxides to magnets. The proposed scheme aims to support both private companies and public sector enterprises by providing incentives to establish domestic capacity across the entire value chain. India Rare Earth Limited, a government-backed company, is set to play a crucial role by providing about 500 tons of rare earth raw materials to original equipment manufacturers involved in magnet production, the Moneycontrol report said. Billionaire Anil Agarwal's Vedanta Group, JSW Group and EV parts maker Sona BLW Precision Forgings Ltd. are among those who have expressed an interest in this initiative, according to a report by Bloomberg. New Delhi has stepped up its efforts to make the magnets that are used in electric vehicles, generators and hard drives, after Beijing announced export restrictions in April. China presently dominates the global market, accounting for around 60% of the world's supply of rare earth magnets. Under China's revised rules, its exporters are required to secure licenses and submit end-use declarations that confirm that materials will not be used in the defense industry or get re-exported to the US. Indian industry experts have called on the government to support the manufacturing of the component, which is also crucial for the renewable energy sector. In the 2024-25 fiscal year, the South Asian nation imported 53,748 tons of rare earth magnets, according to the Economic Times.
New Indian Express
10-07-2025
- Business
- New Indian Express
Vedanta demerger proposal set to receive approvals soon: Anil Agarwal
Vedanta Group Chairman Anil Agarwal on Thursday said the company's demerger proposal is in the final stages of receiving the necessary approvals. Agarwal, speaking at the company's 60th Annual General Meeting, stated that each of the demerged businesses has the potential to grow into a $100 billion enterprise. Once implemented, for every share held in Vedanta Ltd, shareholders will receive one share in each of the four demerged companies. Vedanta Group plans to create separate entities focused on aluminium, oil and gas, power, iron and steel, and zinc and silver. 'Our demerger proposal has received support from over 99.5% of shareholders and creditors. This is a vote of confidence like no other,' said Agarwal. The AGM was held a day after US short-seller Viceroy Research released a report on Wednesday, calling the Agarwal-led British parent firm Vedanta Resources a 'parasite' that is 'systematically draining' its Indian subsidiary. In response, officials at Vedanta Ltd strongly denied the allegations, stating that the report offered no new findings that should concern investors. Agarwal said Hindustan Zinc is investing `12,000 crore to set up a 250,000 tonne integrated smelting complex, calling it a key part of the company's 2x growth vision.
