π Unveiling Corporate Deception! π΅οΈββοΈ We have exposed a stunning case of corporate disguise & misleading tactics orchestrated by #Vedanta & the latest twist? SEBI has taken decisive action, prompted by our in-depth investigation
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Background: We have published on @the_core_in an investigative analysis showing how Vedanta disguised investors about its Semiconductor business
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This thread is divided in two parts
1st part we are republishing our analysis of what we have identified a year ago & also in our recent analysis posted by The Core
2nd Part - SEBI's action post our indepth research
Long Read : Have a coffee and enjoy the reading
1st part we are republishing our analysis of what we have identified a year ago & also in our recent analysis posted by The Core
2nd Part - SEBI's action post our indepth research
Long Read : Have a coffee and enjoy the reading
Part 1 : How it started ?
On February 14, 2022 β less than two months after the initial PLI scheme was announced by the government, a press release put out by Vedanta Limited announced the signing of an MOU with Foxconn to semiconductors in India.
On February 14, 2022 β less than two months after the initial PLI scheme was announced by the government, a press release put out by Vedanta Limited announced the signing of an MOU with Foxconn to semiconductors in India.
The press release did not clearly state which entity had signed the MoU with Foxconn β Vedanta Limited (the Indian listed entity) or Vedanta Resources (the London based promoter of Vedanta Limited). The release mentions βVedanta Groupβ which could refer to either entity.
But since this press release was uploaded on the official website of Indian listed entity (Vedanta Limited), stakeholders believed that it will be Vedanta limited which will be foraying into the semiconductor business
Investors cheered the companyβs move as the stock rose by 3% on day after the announcement.
The event was widely covered by media
The event was widely covered by media
But this celebrated deal (MoU) was not disclosed to the Exchanges.
"WHY?" even Exchanges also asked
Vedanta said business of semiconductor manufacture was not under the listed entity but will be taken up by the holding company of Vedanta Limited.
"WHY?" even Exchanges also asked
Vedanta said business of semiconductor manufacture was not under the listed entity but will be taken up by the holding company of Vedanta Limited.
This is unusual & misleading : In the semiconductor business is not under listed then why the company from its official listed entity's website's press release section said they signed MOU.
While this whole clarification got un-noticed by stakeholders except us
While this whole clarification got un-noticed by stakeholders except us
Despite having officially clarified to BSE that VEDL, the listed entity, had nothing to do with the chips, VEDL officials failed to not only counter the popular perception that it was the listed entity that was getting into semiconductors, but actively encouraged the same.
They lied in two consecutive concalls held in April-22 & June-22. Not only this Group CEO said that chip biz has potential to create wealth for the shareholders
Even lied in Vedanta Resources (London) Concalls
This happened despite asking for clarification by analyst
Even lied in Vedanta Resources (London) Concalls
This happened despite asking for clarification by analyst
Vedanta Group Chairman Anil Agarwal does his bit to bolster this.
Annual General Meeting β Chairmanβs Speech on 10th Aug-22
Anil Agarwal in his AGM speech said: βWe are also making a foray into the manufacturing semiconductor..."
At 9 min
youtube.com
Annual General Meeting β Chairmanβs Speech on 10th Aug-22
Anil Agarwal in his AGM speech said: βWe are also making a foray into the manufacturing semiconductor..."
At 9 min
youtube.com
He reiterates this in subsequent media interactions as well.
Chairmanβs interview on CNBC TV-18 on 14th Sept-22, the day Vedanta signed MoU with Gujarat Govt for setting up a semiconductor plant in Gujarat.
youtube.com
Chairmanβs interview on CNBC TV-18 on 14th Sept-22, the day Vedanta signed MoU with Gujarat Govt for setting up a semiconductor plant in Gujarat.
youtube.com
The annual report merely mentions the fact about MoU with Foxconn without clarifying which entity is involved β Vedanta Resources or Vedanta Limited
The press release issued by Vedanta Limited after the signing of an MoU with the Gujarat Government on September 14, 2022, went so far as to actually mention Vedanta Limited.
The press release issued by Vedanta Limited after the signing of an MoU with the Gujarat Government on September 14, 2022, went so far as to actually mention Vedanta Limited.
This is the time (Sept-22) when everybody realised that semiconductor business is not under listed entity but long back in Feb-22 they clarified the same thing
But nobody noticed, they played their tactics of disguising investors
But nobody noticed, they played their tactics of disguising investors
Obviously when everybody realised Vedanta shares fell by 10%
Post this confusion when the earnings call of Q2 FY23 was held on 28th Oct-22, CEO Sunil Duggal goes so far as to deny commenting on the semiconductor business!
Clearly, the Vedanta Group took good advantage of the confusion between the Group and the listed entity to try and shore up the image of the listed entity β and boosting its share price in the process.
In conclusion, despite clarifying in Feb-22, co keep on disguising the fact the chip biz is under listed entity through various means till Sept-22. It stopped disguising when everybody realised their mistake
Here is the full timeline of events and highlighted in red are those which are exclusively noted by Beat The Street and missed in SEBI's investigation which took nearly 1 yr after we highlighted the redflag
Part 2 : Sebi Investigation
Sebi said Vedanta Limited disclosed the updates about promoter's business on its own website and letterhead which is misrepresenting
Everything in SEBI's report and more than that have been already highlighted in our Exclusive report @the_core_in
Sebi said Vedanta Limited disclosed the updates about promoter's business on its own website and letterhead which is misrepresenting
Everything in SEBI's report and more than that have been already highlighted in our Exclusive report @the_core_in
Sebi says
1. these announcements have wide implications on the share
2. Vedanta was aware about this biz is not under listed entity since Feb-22 then why company keep on presenting the biz as part of listed entity especially in various press release & media
1. these announcements have wide implications on the share
2. Vedanta was aware about this biz is not under listed entity since Feb-22 then why company keep on presenting the biz as part of listed entity especially in various press release & media
Co did not made any attempts or effort to rectify the misleading info.
Also SEBI said co is repeat offender of posting info about promoter on its own website
Also SEBI said co is repeat offender of posting info about promoter on its own website
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