Rajesh Exports Shares Hit Fourth Straight Lower Circuit After SEBI Order

Shares of Rajesh Exports remained under pressure on Tuesday, June 9, with the stock locked in the 5% lower circuit for the fourth consecutive trading session following an interim order issued by the Securities and Exchange Board of India (SEBI).

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The stock was locked at ₹89.80 on the BSE, down 4.97% from its previous close. Rajesh Exports shares have remained stuck in the lower circuit since last week as investors reacted to the market regulator’s findings against the company.

SEBI Alleges Revenue Inflation

The sharp decline in the stock follows a 109-page ex parte interim order issued by SEBI on June 3. In the order, the regulator alleged that Rajesh Exports inflated its revenues by ₹15.15 lakh crore between FY21 and FY25.

According to SEBI, nearly 99.8% of the revenues attributed to the company’s subsidiaries during the period were materially misrepresented. The regulator also raised concerns regarding alleged fund diversion, non-transparent related-party transactions, and disclosure lapses linked to Elest Pvt Ltd and ACC Energy Storage Pvt Ltd.

Both entities are associated with Rajesh Exports’ lithium-ion battery business.

Promoter Barred From Securities Market Activities

As part of the interim directions, SEBI barred Rajesh Exports Chairman and promoter Rajesh Mehta from buying, selling, or otherwise dealing in the company’s securities until further orders.

The regulator has also ordered a fresh forensic audit of the company’s books to examine the issues highlighted in its findings.

The interim limits and audit mandate have contributed to uncertainty over the company, adding to sustained selling pressure in the shares.

PLI Scheme Status Under Review

Investor sentiment was further impacted by reports that the Ministry of Heavy Industries is considering removing Rajesh Exports from the list of beneficiaries under the Production-Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) battery storage.

According to a PTI report, there is a strong view within the ministry in favour of removing the company from the scheme following SEBI’s findings.

The matter is expected to be placed before Heavy Industries Minister H D Kumaraswamy for a final decision in the coming days.

Stock Remains Under Selling Pressure

Rajesh Exports shares have witnessed sustained selling since the release of SEBI’s interim order, with the stock remaining locked at the lower circuit limit for four straight sessions.

Participants continue to monitor the regulatory procedures, the SEBI-ordered forensic audit and the government’s examination of the company’s eligibility under the ACC battery storage PLI program.

The stock continued to lose momentum on Tuesday and was trading at ₹89.80 as concerns about the regulatory findings continued to weigh on market sentiment.