Rajesh Exports share price: Shares of Rajesh Exports remained under intense selling pressure on Wednesday, June 10, hitting the 5% lower circuit for the fifth consecutive trading session after the Securities and Exchange Board of India (SEBI) levelled serious allegations against the company.
The stock was locked at ₹85.35 apiece today. It has witnessed a sharp erosion in investor wealth since the regulator’s interim order. Rajesh Exports shares have fallen 22.6% in the last one week, 30% over the past month, 55% in six months and 58% over the last year.
The pressure on the stock intensified further after reports suggested that the Ministry of Heavy Industries (MHI) could soon decide whether to remove Rajesh Exports from the list of beneficiaries under the government’s production-linked incentive (PLI) scheme for advanced chemistry cell (ACC) battery storage.
According to a PTI report, there is a “strong view” within the department in favour of immediately disqualifying the company from the scheme. The final proposal is expected to be placed before Heavy Industries Minister H.D. Kumaraswamy, who recently returned from an official visit to Kyrgyzstan.
The latest development comes at a time when the company is already facing heightened regulatory scrutiny following SEBI’s interim findings.
Why is Rajesh Exports under SEBI scanner?
At the centre of the controversy is SEBI’s 109-page interim order, which alleged that Rajesh Exports misrepresented nearly all of its revenue over five years.
According to the market regulator’s prima facie findings, the company overstated its operational scale and financial performance between FY21 and FY25. SEBI alleged that nearly ₹15.15 trillion, representing about 99.8% of the revenue attributed to the company’s subsidiaries during the period, may have been misrepresented.
The regulator also raised concerns over alleged illegal fund diversion, opaque related-party transactions and serious disclosure lapses linked to Elest Pvt Ltd and ACC Energy Storage Pvt Ltd, two entities associated with the company’s lithium-ion cell business.
As a result, SEBI barred Rajesh Exports promoter and Chairman Rajesh Mehta from buying, selling or otherwise dealing in the company’s securities until further orders. The regulator has also directed a fresh forensic audit of the company’s books.
Rajesh Exports, however, has strongly contested the allegations. Following SEBI’s June 3 interim order, the company issued a clarification stating that the regulator had neither recorded any conclusive adverse findings nor imposed any penalty or coercive action.
The company argued that the alleged discrepancy stemmed from a misunderstanding involving its Swiss subsidiary, Valcambi.
“The core observation in the order is with regard to the mis-reporting of the revenues. This has emerged primarily due to confusion because SEBI has considered the EBITDA of Valcambi instead of revenue. The consolidated revenue as stated by the company is correct,” Rajesh Exports said.
What Rajesh Exports said in its defence
In a fresh defence of its position, Rajesh Exports said on Sunday that it had already provided between 300 GB and 400 GB of documentation to SEBI during the course of the investigation.
The company maintained that the regulator may not have identified the correct files and said it would resubmit all relevant documents within 15 days to help clarify the matter.
In an interview with PTI, Chairman Rajesh Mehta claimed that SEBI’s allegation that the company inflated revenues by ₹15.15 lakh crore between FY21 and FY25 was based on a fundamental accounting error. According to Mehta, the regulator mistakenly picked up EBITDA figures and treated them as top-line revenue.
“We had given them 300-400 GB documents, running into lakhs (of pages). I think they have not been able to find the correct documents. The whole confusion has happened there,” Mehta said.
With SEBI’s investigation continuing and the government’s decision on the ACC battery PLI scheme still pending, investors are expected to closely monitor further developments surrounding the company and its future participation in India’s battery manufacturing programme.
(With inputs from agencies)
