Jindal Steel shares plunged as much as 6% to a three-week low in their biggest fall since mid-March.
The federal financial crime fighting agency raided offices of Jindal Steel & Power Ltd (JSPL) in New Delhi on Thursday over suspected violation of foreign exchange regulations, a source familiar with the matter said.
The federal Enforcement Directorate (ED) also conducted searches in Gurgaon, a satellite town near the capital's main airport, the source said.
Jindal Steel shares plunged as much as 6% to a three-week low in their biggest fall since mid-March.
The company did not immediately respond to a Reuters request for comment on the searches.
"The searches have been going on since morning, maybe over old cases," the source said, declining to be identified due to the sensitive nature of the matter.
JSPL was India's fifth largest crude steel producer in 2021, and competes with Tata Steel, JSW Steel, state-run SAIL and ArcelorMittal Nippon Steel India (AMNS India).