Rajesh Exports Stock Surges 5%, Breaks Seven-Day Losing Streak After SEBI Interim Order
Shares of Rajesh Exports Ltd experienced a sharp recovery in morning trade on Monday, climbing to Rs 80.23 and hitting the 5% upper circuit. This rebound was significant, as it snapped a streak of seven consecutive losing sessions for the jewellery maker.The stock had faced immense pressure over the past week, shedding nearly 30% of its value in the preceding period. On Friday, concerns over regulatory actions led the share price to slump to a 52-week low of Rs 77.05 after seven consecutive trading days of declines.
The SEBI Allegations and Market Pressure
The sharp decline in the stock was primarily triggered by an interim order issued by the Securities and Exchange Board of India (SEBI). This order barred the company and its founder-chairman, Rajesh Mehta, from accessing the securities market pending further investigation.In its June 3 interim order, SEBI alleged that Rajesh Exports had overstated its revenue by approximately Rs 15.15 lakh crore across FY21 and FY25. The regulator also voiced concerns regarding disclosures related to the company's overseas subsidiaries.
SEBI noted that a substantial portion of the revenue reported by the company—around 97-99%—originated from overseas subsidiaries, particularly Switzerland-based Valcambi SA. This concentration in foreign entities was a key focus of the regulatory scrutiny.
Company Clarification and Investor Sentiment
In response to the regulator's actions, Rajesh Exports issued a detailed clarification last week. The company vehemently rejected any allegations of wrongdoing and maintained that its reported revenues and financial disclosures are entirely genuine.Rajesh Exports asserted that the SEBI order was interim in nature, containing only preliminary observations. Furthermore, the company confirmed it is actively addressing all concerns raised by the regulator with supporting documents and explanations.
The company clarified various data points to address market queries. Regarding FY25 figures, Rajesh Exports explained that variations across different disclosures relate to distinct reporting parameters, such as voting-eligible shares or total paid-up share capital, not inconsistency or irregularity.
Path Ahead Despite Monday’s Rebound
Despite the welcome rebound on Monday, the stock remains considerably lower than pre-SEBI levels which preceded the recent heavy selloff. Investors are closely monitoring how the company navigates the ongoing regulatory process.The market is awaiting further developments as Rajesh Exports continues to submit supporting documentation and explanations in response to SEBI's interim order. The outcome of the investigation will be critical for restoring full investor confidence following the period of extreme volatility.
Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
Any views, opinions, or statements expressed, where applicable, are those of the respective analysts or experts and do not reflect the views of this website. The website has no association with such viewpoints and does not assume any responsibility for them.