Rajesh Exports Shares Plunge Amid SEBI Probe
Shares of jewellery manufacturer Rajesh Exports Ltd. experienced a sharp decline, plummeting 5 percent to Rs 104.65 in early trade on Thursday. This drop extends a six-month trend, during which the stock has fallen 44.63 percent. The significant market reaction follows an interim order from the Securities and Exchange Board of India (SEBI) that has barred Rajesh Exports and its promoter, Rajesh Mehta, from accessing the securities market.
SEBI's action comes amidst serious allegations that the company misrepresented nearly its entire revenue over a five-year period and diverted substantial company funds without proper approvals or disclosures. The regulator's investigation revealed that between FY21 and FY25, approximately 97–99 percent of Rajesh Exports' consolidated revenue, amounting to an alleged Rs 15.15 lakh crore, originated from its overseas subsidiaries, particularly Switzerland-based Valcambi SA. However, the company reportedly failed to consistently disclose the financial statements of these subsidiaries publicly, despite Valcambi SA being presented as the group's primary operating entity.
Further allegations from SEBI include non-genuine accounting entries involving Affluence Shares and Stocks Pvt Ltd. Rajesh Exports reported sales and purchases totaling over Rs 11,487 crore with Affluence, transactions which Affluence reportedly denied ever conducting. SEBI asserts these entries were linked to Rajesh Mehta's personal derivatives trading activities, used to inflate turnover without any underlying economic substance. Additionally, SEBI alleges that Rajesh Exports routed Rs 338.90 crore of company funds to accounts connected to promoter Rajesh Mehta, including for his personal derivative trades, bypassing necessary board and audit committee approvals and failing to make related-party disclosures.
The market regulator estimates that these alleged financial misrepresentations and fund diversions have resulted in a staggering wealth erosion of Rs 12,725.53 crore for the company's shareholders. Rajesh Exports has not yet issued an official statement regarding SEBI's interim order.
Ownership Snapshot: LIC and FII Holdings
Amidst these developments, an ownership snapshot reveals key institutional holdings in Rajesh Exports. As of the March 2026 quarter, Life Insurance Corporation of India (LIC), the country's largest insurer, held a significant 10.80 percent stake in the company.
Conversely, foreign institutional investors (FIIs) have been reducing their exposure to Rajesh Exports over the past three years. FII ownership saw a decline from 17.6 percent in March 2023 to approximately 14.3 percent by March 2026. Among specific foreign investors, Bridge India Fund held an 8.46 percent stake, while Schwab Fundamental Emerging Markets Equity ETF owned 2.70 percent during the March 2026 quarter.
Other notable shareholders include Dhirajlal Jerambhai Dhakan, who held a 4.81 percent stake in the company. The promoter group maintains a substantial holding of 54.55 percent in Rajesh Exports.