Synopsis
Shares of Vedanta and Hindustan Zinc fell after the Enforcement Directorate visited some of their offices as part of a FEMA investigation. The companies confirmed the visits and said they were fully cooperating with authorities. This news follows Vedanta’s recent demerger and a positive rating upgrade from ICRA.
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Agencies ED conducted searches at premises linked to the Vedanta group in Delhi and Mumbai as part of an investigation under the Foreign Exchange Management Act (FEMA).The actions of Vedanta And Hindustan Zinc fell 1% each on Wednesday after the former confirmed in an exchange filing that the Law Enforcement Branch The team visited some of its offices, confirming the reported information.
“We hereby inform that the Enforcement Directorate team visited certain offices of our company and Hindustan Zinc, a subsidiary of the company,” Vedanta said after the exchanges sought clarification on the information regarding ED conduct research against the Vedanta group to FEMA probe. The Anil Agarwal-led company added that it was fully cooperating with authorities and providing all requested information.
In another exchange filing published on Tuesday, Vedanta said the proceedings were ongoing. “We wish to reiterate that the Company is and will continue to comply with the SEBI listing regulations and keep the stock exchange(s) duly informed of all material information/events, including price sensitive information, in accordance with applicable provisions,” it added.
Read also | Vedanta says ED officials visited some of its offices and Hindustan Zinc units
The Economic Times reported on Tuesday, citing officials, that ED had conducted searches at premises linked to the Vedanta group in Delhi and Mumbai as part of an investigation under the Foreign Exchange Management Act (FEMA).
In a quote to ET Bureau, Vedanta spokesperson said, “We are fully cooperating with the authorities and providing all requested information. The Company remains committed to complying with all applicable laws and regulations. As the matter is currently undergoing regulatory proceedings, we are unable to comment further at this stage. »
Read also | ED raids Vedanta group in FEMA case
Improved ICRA ratingsLast week, ratings agency ICRA removed the company from its oversight, with growing implications after greater clarity on the distribution of assets and liabilities under the ongoing demerger plan.
ICRA upgraded Vedanta’s long-term rating to AA+ (stable), assigned it a stable outlook and reaffirmed the short-term rating. “The rating action takes into account ICRA’s expectations of further strengthening of Vedanta Group’s credit profile in FY2027, building on the considerable improvement seen in FY2026. This was supported by a sharp increase in base metal prices, which contributed to a strong financial risk profile for the group, which reported an OPBDITA of $6.7 billion during the financial year 26,” the rating agency said.
Read also | Vedanta shares jump 2% to new 52-week high. What is behind this surge?
Vedanta stock priceVedanta shares fell 6% in a week but gained around 23% in a month. The stock has recently adjusted to its mega split. Vedanta had announced in April that each eligible shareholder would receive one share each of Vedanta Aluminum Metal (VAML), Talwandi Sabo Power (to be renamed Vedanta Power), Malco Energy (to be renamed Vedanta Oil and Gas) and Vedanta Iron and Steel for every share held in the parent company, marking one of the largest corporate restructurings in India’s metals and mining sector. Investors are now awaiting the listing of the four new companies from the mining conglomerate.
Read also | Vedanta split: at what price will each of the four new companies be listed? Check the acquisition cost
Hindustan Zinc share priceHindustan Zinc shares fell about 4% in a week but gained 5% in a month and more than 2% so far in 2026. The stock is up more than 33% in a year. Over the longer term, the company’s shares have returned 104% over three years and 93% over five years.
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