Viceroy report has no new info Vedanta has not shared before: VRL CEO Deshnee Naidoo
DEMERGER PLANS
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Mumbai: US-based short seller Viceroy Research 's report on Vedanta Resources (VRL) has no new information that has not been voluntarily shared with shareholders previously, VRL's chief executive officer Deshnee Naidoo said Thursday."The authors of the report have compiled only part information filled with gross inaccuracies which you've also discerned as part of this meeting," Naidoo said addressing shareholders at the annual general meeting of India-listed Vedanta.On Wednesday, Viceroy Research, which is short on the debt of Vedanta Resources, said that the structure of Vedanta Resources, which is the holding company of Vedanta, is that of a 'ponzi' scheme. It alleged that the group is on the brink of insolvency, and is being propped only by cash infusions from its subsidiary Vedanta.Chairman Anil Agarwal , meanwhile, said that disclosures and transparency are fundamental for the company, and that the report is "motivated", but the company will deal with it.Viceroy also pointed out irregularities in several of the company's subsidiaries including Hindustan Zinc , Talwandi Sabo Power, Electrosteel Steel and Konkola Copper Mines."It's all about the disclosures and the transparency that we've maintained with you over the decades," Naidoo said, adding that the management would continue to focus on demerger , diversification and deleveraging.The group will allocate $5.5-$6 billion on growth capital expenditure over the next three -four years, she reiterated, which would help annual earnings before interest, tax, depreciation and amortization reach $10 billion."Our growth capex is our strategic choice, and we've guided that we continue to look at a spend of $1.5 billion (annually) over the coming years, next two to three years, in order to complete the capital programme to deliver the expansions across the portfolio," she said. Vedanta Resources had a net debt of over $11 billion at the end of fiscal 2025, down by $1.2 billion.Agarwal is confident that the proposed demerger of Vedanta, into five independently listed companies, will be completed before September. The proposal has already received approval from 99.5% creditors and shareholders. "Each of these businesses has the potential to grow into a $100 billion enterprise," he said."I have never been more optimistic about the natural resources and technology sectors," he told shareholders.Viceroy Research, meanwhile, said that the demerger does not address the fundamental cash crunch for Vedanta Resources, and the companies formed post the demerger will have unsustainable debts right from their inception.While the company's AGM was on, Viceroy Research issued a statement on social media website 'X' terming the meeting a "filibustering" session."Instead of Q&A, the Vedanta Q&A is just a filibustering session where obvious shareholder plants just praise Agarwal, and don't ask any questions," the research firm said. "It's so absurdly ridiculous to praise the chair of the company looting you."
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