Shares of Anil Agarwal-led mining major Vedanta Limited lost over 4% from the day’s high on Tuesday, 2 June, following the raids at the premises linked to the group by financial crime-fighting agency Enforcement Directorate (ED).
According to a PTI report, the ED was conducting the searches as part of an investigation under the Foreign Exchange Management Act (FEMA).
Following the reports, Vedanta shares, which opened higher in trade today, witnessed some selling pressure and slipped into the red. Vedanta share price hit the day’s low of ₹328.30 on the BSE as it lost 4.4% from the day’s peak of ₹343.50 and over 2% from its last close of ₹337.25.
Trading activity was higher than usual. Data as of 12.30 pm showed that 22.77 lakh Vedanta shares changed hands so far compared with the two-week average of 14.04 lakh shares.
ED raids Vedanta group
The report stated further that the raids were launched against the business house, promoted by billionaire Agarwal, on Monday. Premises located in Delhi and Rajasthan, apart from some other locations, have been covered, officials said.
A Vedanta spokesperson confirmed the ED action and said the company was “extending full cooperation to the authorities and is providing all information sought.”
“The company remains committed to compliance with all applicable laws and regulations. “As the matter is currently under regulatory process, we are unable to comment further at this stage,” the spokesperson told the news agency.
Vedanta Group last week said that it has received its highest domestic credit rating in over a decade after rating agency ICRA upgraded the long-term ratings of its key group entities to AA.
Securities with an AA rating are considered to have a high degree of safety regarding timely servicing of financial obligations. Such securities carry very low credit risk.
Vedanta share price trend
Shares of recently-demerged Vedanta Limited have emerged as wealth creators this year despite a turbulent Indian stock market. The large-cap stock has surged 71% in six months and 53% on a year-to-date (YTD) basis.
On a longer time frame, Vedanta has delivered multibagger gains to investors. It is up 112% in a year, 233% in five years and 761% in 10 years, according to BSE data.
Disclaimer: This story is for educational purposes only. We advise investors to check with certified experts before making any investment decisions.
