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Rajesh Exports Shares Extend Decline After Founder Declines to Challenge Sebi Order
Rajesh Exports shares have fallen nearly 27 percent since Sebi issued an interim order alleging revenue overstatement of about Rs 15.15 lakh crore between FY21 and FY25. The stock hit its sixth consecutive lower circuit after founder and CEO Rajesh Mehta said he would not challenge the regulator's findings and would continue cooperating with the investigation.
By Finblage Editorial Desk
10:55 am
11 June 2026
Shares of Rajesh Exports continued to remain under pressure, falling for the sixth straight trading session after founder and CEO Rajesh Mehta stated that he would not challenge Sebi's interim order issued on June 3.
The stock was locked in the 5 percent lower circuit at Rs 80.43 on the NSE on Thursday, extending its decline to nearly 27 percent from Rs 109.99 recorded on June 3. The sustained selling follows regulatory concerns raised by the Securities and Exchange Board of India regarding the company's financial disclosures.
In its interim order, Sebi alleged that Rajesh Exports overstated its consolidated revenue by approximately Rs 15.15 lakh crore during the period from FY21 to FY25. According to the regulator, the alleged inflation was linked to revenues reported from overseas subsidiaries, particularly Switzerland-based Valcambi SA.
Sebi stated that while Rajesh Exports reported substantial revenues from its foreign subsidiaries in its consolidated financial statements, the audited standalone financial statements of those entities reflected significantly lower figures. The regulator also raised concerns about a prima facie misrepresentation of the company's financial position, noting that a large portion of the reported revenue originated from overseas subsidiaries whose financial statements were not publicly disclosed.
Responding to the allegations, Rajesh Mehta said he would cooperate fully with the ongoing regulatory process and would not contest the interim order. Speaking to PTI, he rejected claims that the company had obstructed Sebi's investigation and maintained that all requested documents had been provided during the audit process.
Mehta stated that any discrepancies identified by the regulator would be reconciled during the course of the investigation. He emphasized that the company had consistently cooperated with Sebi and denied withholding any relevant information.
The Sebi probe and the subsequent sharp correction in the stock have intensified investor concerns regarding the company's reported financial performance and disclosure practices.
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