Rajesh Exports Shares Bounce 5% Amidst Alleged ₹15.15 Lakh Cr Fraud Probe

Rajesh Exports shares saw a 5% jump to hit the upper circuit on Monday, attempting to recover after a brutal 30% crash over seven consecutive trading sessions. The volatility follows a massive SEBI interim order alleging significant revenue inflation within the company.

The SEBI Allegations: A ₹15.15 Lakh Crore Discrepancy

The sudden turmoil in Rajesh Exports' stock price was triggered by an interim order from the Securities and Exchange Board of India (SEBI). Following a shareholder complaint in March 2024, SEBI conducted a forensic review that uncovered what it described as "egregious and unheard of" findings.

The regulator’s investigation suggested that approximately 97% to 99% of the company's reported revenue might have been inflated. As a result of these findings, SEBI has restrained promoter Rajesh Mehta from buying, selling, or dealing in any securities of Rajesh Exports until further orders are issued. The scale of the alleged misreporting has sent shockwaves through the markets, contributing to a 55% decline in the stock price in 2026 so far and a staggering 87% drop over the last three years.

Rajesh Exports Defends Revenue Figures

In response to the regulatory scrutiny, Rajesh Exports has issued exchange filings to clarify its position. The company maintains that its declared revenues are accurate and denies any overstatement of earnings.

The management attributes the massive discrepancy highlighted by SEBI to a "communication gap and confusion." Specifically, the company claims that SEBI mistakenly used the EBITDA of Valcambi instead of the actual Revenue figures to calculate the alleged 97% difference. Rajesh Exports insists that its consolidated revenue statements are correct and is in the process of submitting authenticated documents to reconcile the data with the regulator.

Promoter’s Stance: No Intent to Contest SEBI

Founder and Chairman Rajesh Mehta has remained calm amidst the crisis, denying allegations that the company obstructed the audit process. In a recent interview, Mehta emphasized that the company has been forthcoming and has submitted all requested documentation to investigators.

Interestingly, Mehta stated that the company does not currently plan to legally contest SEBI's interim directions. He pointed out that the order is interim and does not currently impose any fines, penalties, or coercive actions. "Sebi has all the authority and right to keep asking us for documents... All that will be reconciled now," Mehta noted, expressing confidence that the regulator will arrive at a correct conclusion once the documents are reviewed.

Market Impact and Financial Health

The stock's performance reflects the severe loss of investor confidence. From its previous highs, the market capitalization of Rajesh Exports has plummeted to ₹2,369 crore. While the 5% recovery on Monday provides a slight breather, the company remains under intense scrutiny as the investigation continues to unfold.

Key Takeaways