Rajesh Exports Stock Plunges as SEBI Order and Ministry Scrutiny Intensify Pressure
Shares of Rajesh Exports continued their downward trajectory on Tuesday, hitting the 5 percent lower circuit for the fourth consecutive trading session. The stock is currently locked at the lower circuit limit of Rs 89.80 on the BSE, registering a decline of 4.97 percent. This persistent market weakness comes amid ongoing investor anxiety following the interim order issued by SEBI against the company.Navigating SEBI's Findings and Circuit Breaker
The stock has been held under a lower circuit since last week after the findings released by the market regulator triggered a significant sell-off across the board. The pressure is directly linked to the 109-page ex parte interim order issued by the Securities and Exchange Board of India (SEBI) on June 3.The SEBI order alleged that Rajesh Exports deliberately inflated revenues by Rs 15.15 lakh crore during the financial years FY21 and FY25. Furthermore, the regulator indicated that nearly 99.8 percent of the revenues attributed to the company's subsidiaries during this period were materially misrepresented.
Allegations Detail Fund Diversion and Disclosure Lapses
The regulatory investigation by SEBI extended beyond simple revenue inflation. The document also contained serious allegations regarding fund diversion. There were claims of non-transparent related party transactions and disclosure lapses involving Elest Pvt Ltd and ACC Energy Storage Pvt Ltd, both entities associated with the company's lithium ion battery business.In response to these matters, SEBI issued several interim directions. The regulator has barred Chairman and promoter Rajesh Mehta from any dealing in the company's securities until further orders are received. Additionally, a fresh forensic audit of the company’s financial books was directed by SEBI.
Ministry Review Threatens PLI Scheme Beneficiary Status
Adding layers of concern to investor sentiment, reports suggest that the Ministry of Heavy Industries is considering removing Rajesh Exports from the list of beneficiaries under the Production Linked Incentive (PLI) scheme. This consideration relates specifically to the Advanced Chemistry Cell (ACC) battery storage sector.Sources cited by PTI indicate a strong prevailing view within the ministry favoring the removal of the company from this crucial scheme, following the adverse findings delivered by SEBI. The matter is anticipated to be brought before Heavy Industries Minister H D Kumaraswamy for a final decision in the coming days.
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