Vedanta Shares Plummet 4% After Enforcement Directorate Raids Company Premises
Vedanta Shares Plunge Amid ED Raids
Shares of Anil Agarwal-led Vedanta Limited took a hit on Tuesday, 2 June, following raids at premises linked to the group by the 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).
The raids, which were launched against the business house promoted by billionaire Agarwal on Monday, saw premises in Delhi and Rajasthan, apart from other locations, being covered. A Vedanta spokesperson confirmed the ED action, stating that the company was extending full cooperation to the authorities and providing all information sought.
Despite the ED raids, Vedanta shares opened higher in trade on Tuesday but witnessed selling pressure and slipped into the red. The share price hit a day's low of ₹328.30 on the BSE, losing 4.4% from the day's peak of ₹343.50 and over 2% from its last close of ₹337.25.
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Trading activity was higher than usual, with data as of 12:30 pm showing that 22.77 lakh Vedanta shares changed hands, compared to the two-week average of 14.04 lakh shares.
| Trading Activity | As of 12:30 pm | Two-Week Average |
|---|---|---|
| Vedanta Shares Traded | 22.77 lakh | 14.04 lakh |
Vedanta Group last week 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, carrying very low credit risk.
Shares of 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, with a 112% increase in a year, 233% in five years, and 761% in 10 years, according to BSE data.
Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
Investor Takeaway
Investors should be cautious of Vedanta's shares following the ED raids.
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