Stock Of Rajesh Exports Hits 5% Upper Circuit After Sharp Sebi-Linked Selloff
Rajesh Exports shares rebounded 5% after a steep seven-session decline triggered by Sebi’s interim order barring the company and its founder from market access. The stock had earlier plunged nearly 30% and hit a 52-week low amid allegations of inflated revenues. The company has denied wrongdoing and is contesting the claims
Shares of Rajesh Exports Ltd staged a sharp recovery in morning trade on Monday, hitting the 5% upper circuit at Rs 80.23, after enduring a seven-session losing streak that wiped out nearly 30% of its market value.
The rebound came after a steep selloff that pushed the stock to a 52-week low of Rs 77.05 on Friday.
The decline was triggered by an interim order from the Securities and Exchange Board of India (Sebi), which barred Rajesh Exports and its founder-chairman Rajesh Mehta from accessing the securities market pending further investigation.
In its June 3 interim order, Sebi alleged that the company had overstated its revenue by approximately Rs 15.15 lakh crore between FY21 and FY25.
The regulator also raised concerns over financial disclosures related to the company’s overseas subsidiaries, stating that nearly 97–99% of Rajesh Exports’ consolidated revenue was generated through entities abroad, particularly Switzerland-based Valcambi SA.
Following the order, the stock witnessed heavy selling pressure, extending losses for seven consecutive trading sessions.
ALSO READ
In response, Rajesh Exports issued a detailed clarification rejecting all allegations of wrongdoing. The company said its reported revenues and financial statements are accurate and in compliance with regulations.
It further stated that the Sebi order is only interim in nature and based on preliminary observations, and that it is actively working to address the concerns raised with supporting documents and explanations.
The company also pointed out that variations in reported figures across disclosures do not indicate inconsistencies, as they correspond to different reporting parameters such as voting-eligible shares, votes cast, and paid-up capital classifications.
Despite Monday’s recovery, the stock continues to trade significantly below pre-order levels, reflecting ongoing investor caution amid regulatory scrutiny and uncertainty over the final outcome of the Sebi investigation.
RECENT STORIES
-
-
-
-
-