- Rajesh Exports shares rose for the fifth straight session, hitting the 5% upper circuit at Rs 98.2
- The stock gained nearly 28% in five days, recovering much of the loss after SEBI's regulatory action
- Shares remain about 10% below pre-SEBI order closing after falling to a 52-week low of Rs 77.05
Rajesh Exports shares extended their recovery for a fifth straight session on Friday, hitting the 5% upper circuit at Rs 98.2. The stock has gained nearly 28% over the past five trading days, recouping a large part of the losses triggered by regulatory action earlier this month.
Following the latest rebound, the stock is now trading about 10% below its closing price before the Securities and Exchange Board of India's interim order against the company and its founder-chairman, Rajesh Mehta.
The stock had come under sharp selling pressure after SEBI's June 3 order, falling to a 52-week low of Rs 77.05 last week after declining for seven consecutive sessions.
In its interim order, SEBI barred Rajesh Exports and Mehta from accessing the securities market pending the outcome of an investigation. The regulator alleged that the company had overstated revenue by approximately Rs 15.15 lakh crore between FY21 and FY25.
According to SEBI, a significant portion of the reported revenue originated from overseas subsidiaries, particularly Switzerland-based Valcambi SA, which contributed between 97% and 99% of the group's consolidated revenue during the period under review. The regulator has alleged that parts of these reported revenues may have been misrepresented.
Rajesh Exports has denied the allegations and said the regulator's findings are preliminary in nature. The company stated that its financial statements and revenue disclosures are accurate and that it is preparing a detailed response supported by documents and explanations to address the concerns raised by SEBI.
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