Rajesh Exports surges 5%, ending 7-day losing streak
What's the story
Shares of Rajesh Exports witnessed a recovery on Monday, hitting the upper circuit limit of 5% at ₹80.23. The surge comes after a week-long slump in the company's stock price, which had plummeted nearly 30% during seven consecutive trading sessions. On Friday, the stock hit a 52-week low of ₹77.05 due to an interim order from the Securities and Exchange Board of India (SEBI) alleging financial irregularity.
Market ban
SEBI order and allegations
The SEBI order bars Rajesh Exports and its founder-chairman Rajesh Mehta from entering the securities market until an investigation is completed. The regulator had alleged that the company inflated its revenue by about ₹15.15 lakh crore between FY21 and FY25. It also claimed that a large part of this revenue was misrepresented through overseas subsidiaries, particularly Switzerland-based Valcambi SA.
Company response
Company denies any wrongdoing
In response to the SEBI order, Rajesh Exports issued a detailed clarification last week. The company denied any wrongdoing and maintained that its reported revenues and financial disclosures are accurate. It also said that the SEBI order is interim in nature and only contains preliminary observations. The company is currently working on addressing all concerns raised by the regulator with supporting documents and explanations.
Market performance
Stock still far from pre-selloff levels
Despite Monday's recovery, Rajesh Exports's stock is still far from the levels seen before the SEBI action triggered a selloff. The company had previously told Moneycontrol that differences in disclosures do not indicate any inconsistency or irregularity as they relate to different reporting parameters.