Vedanta shares fell for the fifth straight session on Wednesday, June 4, 2026, trading at ₹326.45, down 0.53% as of 13:19 IST on the NSE. The stock has been under sustained pressure following continued media reports of Enforcement Directorate searches at the company's offices. According to Business Standard, the benchmark NIFTY is down around 0.22% on the day, quoting at 23353.3, while the Sensex is at 74101.32, down 0.33%. The Nifty Metal index, of which Vedanta is a constituent, is currently quoting at 13535.2, down 0.71% on the day. Despite the recent decline, Vedanta has gained around 7.42% in the last one month, outperforming the broader market, while the Nifty Metal index has increased around 3.46% in the same period.
Vedanta shares dropped up to 2.65% intraday on Tuesday, June 2, 2026, following continued media reports of Enforcement Directorate searches at the company's offices. According to Upstox, the stock was trading lower amid news reports that the Enforcement Directorate has launched an investigation into alleged foreign exchange violations involving the global mining conglomerate and carried out searches at its premises. The stock opened higher but witnessed selling pressure as reports emerged of the ED's FEMA-related investigation. The stock decline comes after a significant corporate restructuring involving the demerger of several business units, with the company's shares having crashed more than 63% in one single day when the demerger took effect. The volume in the stock stood at 88.87 lakh shares today, compared to the daily average of 385.97 lakh shares in the last one month, indicating higher than normal trading activity amid the ongoing regulatory scrutiny.
Vedanta has officially confirmed that Enforcement Directorate officials visited its offices and subsidiary Hindustan Zinc Ltd as part of the ongoing FEMA investigation, according to an exchange filing released on Tuesday. The company stated that it is fully cooperating with the agency and is providing all necessary assistance as part of the ongoing process. In its clarification, Vedanta emphasized that the visits were related to Hindustan Zinc and noted that the company remains committed to complying with all regulatory requirements. The company added that it is extending complete support to the ED and is responding to all requests for information, though it did not provide additional details regarding the nature of the inquiry. This official confirmation follows earlier reports from The Economic Times citing officials that ED conducted searches at premises linked to the Vedanta Group in Delhi and Mumbai as part of the Foreign Exchange Management Act investigation.
The enforcement action was conducted under the Foreign Exchange Management Act (FEMA) as confirmed by officials speaking to ET Now. The Enforcement Directorate is conducting these searches as part of their ongoing investigation into matters related to foreign exchange management, with the specific focus now revealed to be on alleged brand fee payments made by group entities to their parent company. A 2023 transaction involving a partial refund of brand fees by London-based parent company Vedanta Resources to Vedanta Ltd. is under the scanner of the federal probe agency, officials told PTI. The investigation details and scope of the searches have not been disclosed in the available reports. The probe is related to royalty payments made by Vedanta to its parent entity, Vedanta Resources Limited, with investigators examining whether the transactions complied with the applicable foreign exchange regulations. The Foreign Exchange Management Act governs foreign currency transactions, overseas investments and cross-border financial dealings, with the ED typically initiating action when it suspects violations involving foreign exchange regulations.
Despite the ongoing enforcement action, ICRA upgraded Vedanta's long-term rating to AA+ (Stable) last week, assigning a stable outlook and reaffirming the short-term rating. As per ICRA, the rating action factors in expectations of further strengthening in the credit profile of the Vedanta Group in FY2027, building on considerable improvement witnessed in FY2026. This improvement has been supported by a sharp increase in base metal prices, which has contributed to a strong financial risk profile for the Group, which reported an OPBDITA of $6.7 billion in FY2026. Post-demerger, ICRA expects the relatively stronger cash-generating entities within the Vedanta group to support dividend requirements, with the flexibility to fund them from other group entities as well. The PE of the stock is 70.59 based on TTM earnings ending March 26, reflecting the premium valuation despite the recent regulatory challenges.
The current enforcement action comes after Vedanta announced in April that every eligible shareholder would receive one share each of Vedanta Aluminium 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 biggest corporate restructurings in India's metals and mining sector. The stock has been in the spotlight through May after it began trading adjusted for the demerger, with the value attributable to these new entities currently in price-discovery limbo from the record date until their listings. While eligible shareholders can continue trading Vedanta stock, the value of the new entities remains untraded, even as Vedanta's share price has already adjusted lower post-demerger. Vedanta shares have been trading ex-demerger since April 30, 2026, following a special trading session conducted to discover the price of the residual listed entity after the proposed spin-off.
