Rajesh Exports Extends Rally, Hits 5% Upper Circuit Amid Sebi Scrutiny

Shares of Rajesh Exports extended their sharp recovery on Friday, hitting the 5% upper circuit at Rs 97.51. With this move, the stock has gained nearly 28% over the past five trading sessions, signalling a strong rebound after its recent steep decline.

The recovery comes after a sharp selloff that pushed the stock to a 52-week low of Rs 77.05 last week.

The decline followed a seven-session losing streak triggered by an interim order issued by the Securities and Exchange Board of India (SEBI) on June 3.

In its order, SEBI barred Rajesh Exports and its founder-chairman Rajesh Mehta from accessing the securities market pending further investigation.

The regulator also alleged that the company had overstated its revenue by approximately Rs 15.15 lakh crore during the financial years FY21 to FY25.

SEBI further raised concerns about the financial reporting of the company’s overseas subsidiaries, particularly Switzerland-based Valcambi SA.

According to the regulator, a large portion of Rajesh Exports’ consolidated revenue—between 97% and 99% during the review period—came from its international subsidiaries, and some of this reporting was allegedly misrepresented.

Despite the allegations, Rajesh Exports has strongly rejected any wrongdoing.

In a detailed clarification issued after the SEBI order, the company stated that the findings were preliminary in nature and not conclusive. It reiterated that its financial statements and revenue disclosures are accurate and properly reported.

The company also said it is actively responding to SEBI’s concerns with appropriate documentation and explanations.

Additionally, it clarified discrepancies in reported financial figures across exchange filings, stating that these differences arise from distinct reporting parameters such as voting-eligible shares, actual votes cast, and paid-up share capital classifications. According to the company, these variations do not indicate any irregularity.

Despite regulatory overhang, investor sentiment has improved in the short term, driving a strong technical rebound in the stock after the recent sharp correction.