Anil Agarwal Stocks Fall Up to 3% After ED Conducts FEMA Searches at Group Offices

Synopsis: Vedanta and Hindustan Zinc shares fell up to 3% after the company confirmed ED searches at group offices under a FEMA investigation. The decline comes despite Vedanta’s recent credit rating upgrade and ongoing demerger plans aimed at unlocking shareholder value.

Two major metals sector companies came under pressure in Wednesday’s trading session after regulatory developments triggered cautious sentiment among investors. The decline followed confirmation that officials from the Enforcement Directorate (ED) had conducted searches at multiple group offices as part of an ongoing investigation.

The development comes at a time when the conglomerate is undergoing a significant corporate restructuring and has recently received a credit rating upgrade. While the company stated that it is fully cooperating with authorities, the regulatory scrutiny weighed on investor sentiment in the near term.

Stocks Movement 

With a market capitalisation of Rs. 1,27,146 cr, the shares of Vedanta Ltd were trading at Rs. 325.30 per share, decreasing 2.5% in today’s trading session, making a low of Rs. 325, down from its previous close of Rs. 333.55 per share. 

With a market capitalisation of Rs. 2,57,195 cr, the shares of Hindustan Zinc Ltd were trading at Rs. 608.70 per share, decreasing 3% in today’s trading session, making a low of Rs. 608.50, down from its previous close of Rs. 625.10 per share. 

What Happened 

The shares of metals giant Vedanta and its subsidiary Hindustan Zinc experienced a decline on Wednesday. This market reaction followed an official confirmation from Vedanta via an exchange filing that officials from the Enforcement Directorate (ED) had visited some of its office premises. As of Q4FY26, Vedanta holds 60.71% in Hindustan Zinc.

Scope of the Investigation

The regulatory action involves searches conducted by the ED at multiple premises linked to the Vedanta Group across Delhi and Mumbai. The visits are part of an ongoing investigation under the Foreign Exchange Management Act (FEMA). In response to inquiries from stock exchanges, Vedanta clarified that it is fully cooperating with the regulatory authorities and providing all requested information, noting that the legal and regulatory proceedings are currently underway.

ICRA’s Ratings Upgrade

Despite the immediate pressure from the ED visits, the Vedanta Group recently received a positive credit evaluation from the ratings agency ICRA. ICRA upgraded Vedanta’s long-term rating to AA+ with a Stable outlook, removing it from a watch with developing implications. This upgrade reflects an expected strengthening of the group’s credit profile moving into FY2027, driven by a sharp rise in base metal prices and a strong operational performance that yielded an OPBDITA of $6.7 billion in FY2026.

The company’s stock dynamics are also adjusting to a massive corporate restructuring initiative. In April, Vedanta announced a major demerger scheme, splitting the conglomerate into multiple standalone entities. Under this arrangement, eligible shareholders will receive one share each of Vedanta Aluminium Metal, Vedanta Power, Vedanta Oil and Gas, and Vedanta Iron and Steel for every share they hold in the parent company. Investors are currently awaiting the official market listing of these four newly spun-off companies.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Anil Agarwal Stocks Fall Up to 3% After ED Conducts FEMA Searches at Group Offices appeared first on Trade Brains.