FIRST ON FOX — Acting U.S. Labor Secretary Keith Sonderling is sending letters to the governors of 53 U.S. states and territories demanding “immediate action” to combat fraud, waste and abuse within the unemployment insurance program.

“In the letters, the department announced its intent to crack down on rampant fraud and end mismanagement, improper payments, and corruption within the UI program. Acting Secretary Sonderling notified states that, in partnership with the Office of the Inspector General, the department will use every available enforcement tool — including withholding administrative funds from states for the first time in history — to ensure compliance in protecting UI system integrity and safeguarding taxpayer dollars,” a statement obtained by FOX Business reads.

“We are officially putting governors on notice,” Sonderling said in a statement. “The American people will no longer tolerate the blatant waste, fraud, and abuse of their hard-earned tax dollars — no state should allow it either. If states allow it, they will suffer the consequences. This department is no longer afraid to use every lever available to ensure taxpayer money is protected.” 

This is a developing story. Please check back for updates.

Shares of Vedanta Iron and Steel jumped 5% to hit the upper circuit for the third consecutive session on Wednesday, extending gains to over 16% since Azim Premji-backed Premji Invest’s PI Opportunities AIF V LLP bought shares worth Rs 102 crore after the stock’s market debut on Monday.

PI Opportunities AIF V LLP, an investment arm of Premji Invest, which is owned by Indian billionaire businessman and Wipro Chairman Azim Premji, bought nearly 4.84 crore shares worth Rs 101.68 crore at Rs 21.02 apiece through a bulk deal on Monday.

Among the four Vedanta Group companies listed on Monday, Vedanta Iron and Steel has emerged as the top performer so far, adding more than Rs 1,255 crore to its market capitalisation in just three trading sessions.

The stock debuted at Rs 20 apiece on the NSE, valuing the company at around Rs 7,821 crore at listing. Following the recent rally, its market capitalisation has risen to Rs 9,076 crore as of Wednesday.

Also read: Vedanta Iron & Steel shares list at Rs 22 on BSE as mega demerger concludes

Vedanta Aluminium, the only large-cap stock among the four companies that listed on Monday, hit the 5% lower circuit for the third consecutive session on Wednesday, taking its losses to more than 14% since its market debut. Vedanta Power shares have declined around 2% from their listing price, while Vedanta Oil & Gas also hit the 5% lower circuit for the third straight session, falling over 14% since debut.
Vedanta Iron & Steel has operations across India and Africa and focuses on iron ore exploration, mining and processing. The company also produces high-quality steel, wire rods, TMT bars, pig iron, ductile iron (DI) pipes, ferro-silicon, cement and metallurgical coke.

Also read: 4 new Vedanta Group stocks debut on Dalal Street. What’s ahead?

About Vedanta demerger

In April, Vedanta had announced that each eligible shareholder would receive one share in each of the four demerged entities — Vedanta Aluminium, Vedanta Power, Vedanta Oil & Gas and Vedanta Iron & Steel — for every Vedanta share held as of the record date, May 1.
While Vedanta’s share price had already adjusted to reflect the restructuring, investors were eagerly awaiting the listing of the four spun-off companies. The stocks have initially been placed in the Trade-to-Trade (T2T) segment, where every transaction results in compulsory delivery.

Also read: Vedanta to be removed from MSCI Global Standard Indexes from June 22

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Shares of Vedanta Aluminium Metal tumbled 5% again to hit the lower circuit for the third consecutive session, falling 14% in just three days since listing and wiping off over Rs 29,000 crore from the market capitalisation of what analysts called the new “crown jewel” of Vedanta.

Vedanta Aluminium Metal shares remained locked in the lower circuit at Rs 447.56 apiece on Wednesday. The shares debuted at Rs 522 apiece on NSE on Monday after a special pre-open session. The largecap company’s market capitalisation at debut stood at more than Rs 2 lakh crore, surpassing parent Vedanta’s total market capitalisation. Its market cap has now fallen to Rs 1.75 lakh crore.

Also read: Vedanta Aluminium lists at Rs 527 on BSE after demerger

Is Vedanta Aluminium the new ‘crown jewel’ of Vedanta?

Before the market debut, ICICI Direct said that Vedanta Aluminium stood out as the most attractive entity. “This is supported by its strong contribution to group revenues and margins, along with favourable industry dynamics such as tight global supply, elevated aluminium prices, and ongoing capacity expansions driving volume growth,” it added.

ICICI Securities was also the most bullish on the aluminium business, saying the Iran-US conflict could result in a larger-than-expected aluminium supply deficit. It called Vedanta Aluminium, the group’s new “crown jewel”.

Also read: Why Vedanta’s aluminium business is the undisputed crown jewel of the mega 4-way demerger

Vedanta Aluminium Metal is the largest aluminium producer in India, as well as in the US, Europe, the Middle East, Australia and Africa, according to the company. It produced more than half of India’s aluminium at 2.42 million tonnes in FY25, its website said. It operates a 5 MTPA alumina refinery in Odisha’s Kalahandi district, along with the world’s largest aluminium plant at Jharsuguda, Odisha, with a 1.85 MTPA capacity. It also operates Bharat Aluminium Company Limited (BALCO) in Chhattisgarh.

ICRA recently removed the long-term rating of Vedanta Aluminium Limited (VAML) from “watch with developing implications,” following greater clarity on the allocation of assets and liabilities under Vedanta Limited’s ongoing demerger scheme, as well as the support framework across group entities. ICRA also upgraded the rating and assigned a stable outlook to the long-term rating.

Also read: Vedanta Aluminium vs Vedanta Power; Which can give investors better wealth in Rs 2 lakh crore demerger play

Why are Vedanta Aluminium shares falling?

The sharp drop in Vedanta Aluminium’s share price comes amid falling aluminium prices after Iran and US agreed to a peace deal. US President Donald Trump announced on Sunday that the much-awaited agreement has been finalised, following which global stock markets rallied, with Dalal Street being no exception.
Aluminium producers from the Middle East typically account for nearly 9% of global supply, and the suppliers use the narrow 33-kilometre waterway connecting the Persian Gulf with the Gulf of Oman to ship their metal to global markets and import raw materials. The reopening of the Strait of Hormuz may lead to further downturn in aluminium prices, which can bear an impact on the Indian aluminium producers.

How are the other newly-listed Vedanta stocks performing?

The shares of Vedanta Iron and Steel jumped 5% to hit the upper circuit for the third consecutive session on Wednesday, rallying over 16% since listing. Vedanta Power shares have fallen around 2% from its listing price, while those of Vedanta Oil and Gas hit the 5% lower circuit for the third straight session, falling over 14% since market debut.
Also read: Vedanta demerger unlocks 20% value; Aluminium arm becomes most valuable

(With inputs from agencies)

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)