Shares of Vedanta Limited touched a day’s low of Rs 333.50 on 2 June after the Enforcement Directorate carried out search operations at the company’s offices in Mumbai and Delhi.

The stock came under pressure after news of the searches emerged. Shares fell to Rs 336.25, down 0.3%, immediately after the news hit. 

The searches are part of a FEMA investigation. The probe relates to royalty payments Vedanta Ltd made to its UK-based parent, Vedanta Resources. 

Vedanta had not responded to request for comment at the time of publication. Vedanta had been on a strong run heading into June, supported by investor interest around its demerger. 

The company split into five separate businesses, Vedanta Limited, which retains the base metals operations, along with Vedanta Aluminium, Talwandi Sabo Power, Vedanta Steel and Iron, and Malco Energy. Shares began trading adjusted for the demerger in early May.

Chairman Anil Agarwal told last month that the remaining demerged units will start trading as independent listed entities by the end of June.

The previous close of VEDL stood at Rs 337.15, against a 52-week range of Rs 268.70 to Rs 795.00 as per NSE data.

At 10:56 am, VEDL had recovered to Rs 339.70, up 0.76% on NSE, though the session low reflected how markets first reacted.

Tired of guessing stocks to trade in daily? Tradz by EquityPandit empowers you with powerful tools like daily stock scans for Intraday, Swing & Investing, Market Predictions and much more. Download the Tradz by EquityPandit app today and take control of your investments!