Vedanta – Our Letter to the DIPAM

Author: Viceroy Research Published on: September 23, 2025 Published in: Vedanta (NSE:VEDL)

September 23, 2025 – On September 19, 2025, Viceroy Research sent a letter to the Department of Investment and Public Asset Management (DIPAM), Government of India. The letter outlines the material risk to public equity in Hindustan Zinc Limited (HZL) and Bharat Aluminium Company (BALCO) as a result of Vedanta Limited’s proposed acquisition of Jaiprakash Associates Limited (JAL).

JAL is structurally incapable of funding its own acquisition.
HZL and BALCO, both partially owned by the Government of India, are the only profitable businesses in Vedanta Limited and are being used to sustain unsustainable group-level obligations.
The State is further exposed through Vedanta’s outstanding dues and commitments.

Our letter to DIPAM calls for urgent scrutiny of Vedanta’s proposed transactions and protection of Government-held equity in strategic national assets. Vedanta Resources’ creditors face similar risks of value destruction.

Update (September 22, 2025): The GoI has denied VEDL an extension for its Cambay basin oil and gas block, directing ONGC to assume operations and assets. Coming immediately after the MoPNG objected to VEDL’s demerger scheme at the NCLT, this highlights the depth of conflict between the GoI and VEDL and the growing regulatory and contractual risk. This will further constrain VEDL’s ability to generate and upstream cash to VRL.

LETTER DOWNLOAD LINK

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