Rajesh Exports Sees Significant Stake Sales, With NRIs and Some Foreign Portfolio Investors Exiting

Rajesh Exports Embroiled in Shareholder Drama Amid Allegations of Misrepresentation

Rajesh Exports, a gold jewellery manufacturer, has found itself at the center of a regulatory storm with the Securities and Exchange Board of India (Sebi) issuing an interim order alleging misrepresentation of financial statements. The company's share price has taken a significant hit, plummeting by a staggering 87% over the past three years.

According to exchange data, retail investors, who held up to ₹2 lakh each, held a mere 1.6% of the company's equity capital as of 31 March 2023. Institutional investors, including non-resident Indians (NRIs) and foreign portfolio investors (FPIs), held a significant stake, with NRIs holding 13.77% and FPIs holding 17.60% of the company's equity capital.

However, over the past three years, a significant shift in shareholding has occurred. As of 31 March 2023, retail investors held 1.6% of the company's equity capital, while NRIs held 13.77% and FPIs held 17.60%. By the quarter ending 30 March 2026, retail holding had increased to 14.13%, while NRI holding had plunged to 5.27%, and FPI holding had declined to 14.25%.

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The shift in shareholding has coincided with a significant decline in the company's share price. Between March 2023 and March 2026, the share price plummeted 87% to a five-year closing low of ₹80.38 from ₹610.10. While the price has since recovered by nearly 30% to ₹103.92, the Sebi order has left the stock frozen at the 5% lower circuit.

Experts have described the situation as a classic case of "pump and dump" by influential shareholders on unsuspecting retail investors. The Securities and Exchange Board of India's (Sebi’s) interim order has raised questions about the company's financial statements and the role of its statutory auditors.