<p>New Delhi: Shares of Vedanta Ltd tumbled nearly 8 per cent on Wednesday after US short seller Viceroy Research released a report charging billionaire Anil Agarwal's mining conglomerate to be "financially unsustainable" and posing a severe risk to creditors.</p>.<p>The stock tanked 7.71 per cent to Rs 421 on the BSE.</p>.<p>At the NSE, it dropped 7.81 per cent to Rs 420.65.</p>.Vedanta says Trump's tariffs damaging, seeks import curbs.<p>But later, the stock recovered some of the losses to trade 3.31 per cent down at Rs 441.10 on the BSE.</p>.<p>Viceroy said it was shorting the debt stack of Vedanta Resources, the parent company and majority owner of Mumbai-listed Vedanta Ltd, as it released the 85-page report.</p>.<p>Shorting debt, also known as short selling of bonds, is a trading strategy where an investor looks to profit from a decline in the price of bonds or other debt instruments. It involves borrowing the bond, selling it at the current market price, and then buying it back later at a potentially lower price to return to the lender, pocketing the difference as profit.</p>.<p>Calling Vedanta Resources Ltd (VRL) a "heavily indebted parent", Viceroy said, "The entire group structure is financially unsustainable, operationally compromised, and poses a severe, under-appreciated risk to creditors".</p>.<p>Responding to the report, Vedanta in a statement said, "The report is a malicious combination of selective misinformation and baseless allegations to discredit the Group".</p>.<p>"It has been issued without making any attempt to contact us with the sole objective of creating false propaganda. It only contains a compilation of various information, which is already in the public domain, but the authors have tried to sensationalise the context to profiteer from market reaction," it said. </p>
<p>New Delhi: Shares of Vedanta Ltd tumbled nearly 8 per cent on Wednesday after US short seller Viceroy Research released a report charging billionaire Anil Agarwal's mining conglomerate to be "financially unsustainable" and posing a severe risk to creditors.</p>.<p>The stock tanked 7.71 per cent to Rs 421 on the BSE.</p>.<p>At the NSE, it dropped 7.81 per cent to Rs 420.65.</p>.Vedanta says Trump's tariffs damaging, seeks import curbs.<p>But later, the stock recovered some of the losses to trade 3.31 per cent down at Rs 441.10 on the BSE.</p>.<p>Viceroy said it was shorting the debt stack of Vedanta Resources, the parent company and majority owner of Mumbai-listed Vedanta Ltd, as it released the 85-page report.</p>.<p>Shorting debt, also known as short selling of bonds, is a trading strategy where an investor looks to profit from a decline in the price of bonds or other debt instruments. It involves borrowing the bond, selling it at the current market price, and then buying it back later at a potentially lower price to return to the lender, pocketing the difference as profit.</p>.<p>Calling Vedanta Resources Ltd (VRL) a "heavily indebted parent", Viceroy said, "The entire group structure is financially unsustainable, operationally compromised, and poses a severe, under-appreciated risk to creditors".</p>.<p>Responding to the report, Vedanta in a statement said, "The report is a malicious combination of selective misinformation and baseless allegations to discredit the Group".</p>.<p>"It has been issued without making any attempt to contact us with the sole objective of creating false propaganda. It only contains a compilation of various information, which is already in the public domain, but the authors have tried to sensationalise the context to profiteer from market reaction," it said. </p>