Vedanta shares fall after report says MCA may order corporate governance probe

Vedanta Ltd shares fell over 1 per cent in Wednesday's trade amid a report suggesting MCA may order a probe into Vedanta Group. A preliminary MCA review has reportedly found corporate governance lapses, ZEE Business reported. Business Today could not independently verify the report at this point in time. 

As per the report, MCA committee has approved a proposal for an SFIO investigation. The Oversight Committee cleared the proposal on June 8, the report suggested.

Discussions were underway on whether the probe should be conducted by MCA or SFIO, the report added. 

Vedanta shares declined 1.39 per cent to Rs 278.20. The stock is up 19.72 per cent in the past three months.

Vedanta's promoter group entity Twin Star Holdings Ltd had on Tuesday sold 6,50,72,990 Vedanta shares at an average price of Rs 291.36 via bulk deals.

Meanwhile, Vedanta group firm CopperTech Metals is said to be targeting a valuation of up to $3.57 billion in its US initial public offering (IPO). On Tuesday, CopperTech Metals Inc announced the launch of the roadshow for its IPO of 23,529,412 shares of its common stock. The IPO price is expected to be between $16 and $18 per share. 

To recall, CopperTech Metals Inc had on June 2 publicly filed a registration statement on Form S-1 with the US Securities and Exchange Commission (SEC) relating to the proposed IPO of its common stock.

Established by Vedanta Resources (VRL), CopperTech is a US-domiciled, integrated copper and cobalt producer. CopperTech’s flagship asset, the Konkola Copper Mines, is a high-grade copper and cobalt producer strategically located in Zambia’s Copperbelt Province.