Vedanta Share Price Tumbles Nearly 8% As Viceroy Research Goes Short On Parent Firm's Debts
Viceroy Research turned short on Vedanta Resource as it deemed the company as 'parasite' for extracting cash from Vedanta instead of having its own operation.
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Vedanta Ltd.'s share price slumped nearly 8% to the lowest level in two months as Viceroy Research turned short on its parent firm's debt. The US-based research firm has turned short on Vedanta Resource, as it found the group's financial structure unsustainable and operationally compromised.
According to Viceroy Research, Vedanta Resource's position poses severe risk to creditors. Vedanta Resource has no significant operation of its own and sustaining by extracting cash from 'dying host' Vedanta Ltd.
Vedanta Research got delisted from London Stock Exchange.
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Vedanta Share Price
Vedanta share price declined 7.81% to Rs 420.65 apiece, the lowest level since May 12. The share price pared loses to trade 3.90% down at Rs 438.50 apiece as of 12:19 p.m., as compared to a 0.05% advance in the NSE Nifty 50.
The stock declined 6.35% in 12 months, and 1.5% on year-to-date basis. Total traded volume so far in the day stood at 1.6 times its 30-day average. The relative strength index was at 41.80.
Out of 16 analysts tracking the company, 11 maintain a 'buy' rating, four recommend a 'hold' and one suggests 'sell', according to Bloomberg data. The average 12-month consensus price target implies an upside of 19.3%.
