Rajesh Exports shares hit lower circuit for 6th straight session
What's the story
Rajesh Exports, one of India's leading gold refiners, has seen its share price plummet by nearly 27% since the Securities and Exchange Board of India (SEBI) issued an interim order on June 3. The company's stock hit a lower circuit limit for the sixth consecutive trading session on Thursday. The fall comes after Rajesh Mehta, founder and CEO of Rajesh Exports, said he wouldn't challenge SEBI's order.
Revenue inflation
SEBI accused Rajesh Exports of inflating revenue
In its June 3 order, SEBI accused Rajesh Exports of inflating its revenue by some ₹15.15 lakh crore between FY21 and FY25. The regulator claimed this inflation was due to revenues from overseas subsidiaries, especially Switzerland-based Valcambi SA. The company's shares have fallen from ₹109.99 apiece on June 3 to ₹80.43 today, a decline of 26.88%.
Cooperation assured
Mehta says won't contest SEBI's order
Mehta has said that he won't contest SEBI's interim order and is already cooperating with the regulator. He denied claims that Rajesh Exports obstructed the investigation, insisting that the company has fully cooperated with SEBI during its audit process. "I would never agree to the fact that certain relevant documents have not been submitted by us," Mehta said.
Financial discrepancies
Investigation into alleged revenue inflation, non-disclosure practices
SEBI also flagged a prima facie misrepresentation of Rajesh Exports' financial position, with nearly all reported revenues coming from overseas subsidiaries whose financial statements weren't publicly disclosed. The regulator's order highlighted these concerns as part of its investigation into the company's alleged revenue inflation and non-disclosure practices.