Vedanta promoters hold undisclosed stake via trust, says Viceroy Research
mumbai/bengaluru, July 16 -- US short-seller Viceroy Research on Tuesday levelled new allegations at Vedanta Group, this time accusing Vedanta Ltd's promoters of holding an undisclosed stake through a welfare trust, charges the company rejected as baseless.
The entity under scrutiny is PTC Cables Pvt. Ltd (PTCC), which holds a 1.91% stake in Vedanta Ltd, a company with a market capitalization of Rs.1.75 trillion, according to BSE data. PTCC is owned by Bhadram Janhit Shalika Trust (BJST), which Viceroy alleges is controlled by the Agarwal family, founders of the Vedanta Group.
According to Viceroy, PTCC received Rs.1,500 crore in dividend income from Vedanta over the past five years, and the capital was "upcycled" to promoter-linked entities.
"PTCC exists for one purpose: to quietly recycle Vedanta's cash into promoter-controlled vehicles while maintaining the illusion of independence," the Viceroy report said.
Vedanta denied the allegations. "These assertions are baseless," a spokesperson for the company said, adding that the company was compliant with the disclosure norms as stipulated by the Securities and Exchange Board of India...
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