Shares of Vedanta and its subsidiary Hindustan Zinc fell 1% each on Wednesday, 3 June, after Anil Agarwal-led company confirmed that officials from the Enforcement Directorate (ED) had visited certain offices of the company and its subsidiary, following media reports regarding a Foreign Exchange Management Act (FEMA) investigation.
The clarification came after stock exchanges sought a response from the mining and metals major regarding news reports claiming that the ED had conducted searches at premises linked to the Vedanta Group.
In a filing to the exchanges, Vedanta stated, “We hereby inform that the Enforcement Directorate team visited some offices of our company and Hindustan Zinc, a subsidiary of the company.” The company also said that it is extending full cooperation to the authorities and furnishing all information sought during the process.
The disclosure followed reports published on Tuesday that cited officials as saying that the ED had carried out searches at locations associated with the Vedanta Group in Delhi and Mumbai as part of an ongoing FEMA-related investigation.
Vedanta further informed investors that the proceedings remain in progress. In a separate exchange filing issued on Tuesday, the company said that the matter is currently underway and reiterated its commitment to regulatory compliance and timely disclosures.
“We wish to reiterate that the Company is and will continue to comply with SEBI Listing Regulations and keep the stock exchange(s) duly informed of all material information / events, including price sensitive information(s), in accordance with the applicable provisions,” the company said in its filing.
Vedanta, Hindustan Zinc share performance
Vedanta share price declined 1% to its day’s low of ₹330.00 per share on BSE, while Hindustan Zinc also lost 1% to its intra-day low of ₹618.95 per share.
Vedanta shares have lost 6% in one week but risen around 23% in one month. Hindustan Zinc shares, on the other hand, have fallen around 4% in one week but added 5% in one month.
