New Delhi, June 23 -- Vedanta has long been one of India's major mining players, with a portfolio spanning oil, metals, and minerals. But just as deep as its resource reserves run, so does its debt. Over the years, this mounting debt has cast a shadow not only on Vedanta's financials but also on its most profitable subsidiary-Hindustan Zinc Ltd (HZL).

The pressure peaked in 2023, when market chatter began hinting at the possibility of a default. In response, Anil Agarwal, Vedanta's promoter, assured investors that the company had never defaulted and wouldn't start now. But to keep that promise, Vedanta needed cash. A lot of it.

That's when Vedanta turned to HZL. What followed was a string of heavy dividend payouts, draining its reserves...