Vedanta Ltd Shares Tank 2% After ED Conducts Raids Against Mining Conglomerate In FEMA Case

Vedanta Ltd Stock Price: The shares of Vedanta Ltd declined as much as 2.65% to hit an intraday low of Rs 328.20 apiece on Tuesday, June 2, after the Enforcement Directorate (ED) began conducting raids at several Vedanta Group linked locations across Mumbai and Delhi.

The scrip's trading activity was higher than usual. At the time of writing this report 22.77 lakh Vedanta shares changed hands as compared to the two-week average of 14.04 lakh shares.

The Enforcement Directorate began a foreign exchange "violation" probe against the natural resources conglomerate Vedanta Group and conducted searches at its premises. 

In response to ED probe, Vedanta Group's official spokesperson said, "We are extending full cooperation to the authorities and are 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 investigation is primarily focused on identifying possible irregularities in overseas dealings and fund flows, however, the exact nature of the violations has not yet been disclosed.

Also Read: Vedanta Group's First Reaction After ED Conducts Raids In FEMA Case

The ED is currently examining documents, digital records, and financial trails to establish whether there has been any breach of FEMA provisions.

The officials have not yet released detailed findings or confirmed the scale of the alleged violations. 

The fresh legal trouble for the mining group comes after the company informed 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.

As of 1:28 PM, the shares of Vedanta Ltd were trading 1.19% lower at Rs 333.15 apiece.