Rajesh Exports: Analysts flag confidence crisis for LIC, FPIs, retail investors

Life Insurance Corporation of India (LIC) and foreign portfolio investors (FPIs) collectively hold a 25 per cent stake in Rajesh Exports, data shows.

Market regulator Securities and Exchange Board of India’s (Sebi’s) move to restrain Rajesh Exports and its promoter from participating in the securities market pending further investigation in an alleged Rs 15.15-trillion revenue inflation over the years will trigger a ‘crisis of confidence’ in the company for its shareholders, including Life Insurance Corporation of India (LIC) that holds 10.8 per cent stake in the gold refining and jewellery exporter, suggest analysts. 

 

Sebi cracking the whip on Rajesh Exports’ promoter over alleged fund diversion, said G Chokkalingam, founder and head of research at Equinomics Research, raises a serious concern for retail investors, who he suggests should exit the stock at every available opportunity.

 

 

“There will be a ‘crisis of confidence’ for investors as regards Rajesh Exports as the market regulator (Sebi) itself has initiated the proceedings against the company. LIC stock, on the other hand, may not see much impact despite its holding in Rajesh Exports. This is because the stock forms a small portion of LIC’s total holding across companies. At best, it can remain range-bound,” he explains.

 

Shares of Rajesh Exports hit the lower circuit of 5 per cent at ₹104.65 on the BSE on Thursday.

 

Ambareesh Baliga, an independent market analyst does not expect LIC stock to remain under pressure for long given its exposure to Rajesh Exports. 

 

“Rajesh Exports stock has been on a steady decline since December 2025. One must also remember that the LIC’s total stock holding is huge despite the exposure to Rajesh Exports. I do not see this continuing to impact the sentiment in LIC stock,” he said.

 

Rajesh Exports: Shareholding pattern

 

Life Insurance Corporation of India (LIC) and foreign portfolio investors (FPIs) collectively hold a 25 per cent stake in Rajesh Exports. 

 

According to March 2026 shareholding pattern filed by the company, LIC held 10.8 per cent stake. Total 75 FPIs, including Bridge India Fund (8.46 per cent) and Schwab Fundamental Emerging Markets Equity ETF (2.7 per cent) collectively held 14.19 per cent stake in Rajesh Exports, data shows. 

 

On the other hand, retail individual shareholders held 14.55 per cent, while Dhirajlal Jerambhai Dhakan, non-resident Indians (NRI) hold 4.81 per cent stake in Rajesh Exports, latest available data shows.

 

The promoters, Rajesh Jasvantrai Mehta, Prashant Jasvantrai Mehta, Mahesh Jasvantrai Mehta and Bipin Jasvantrai Mehta, have collectively held 54.55 per cent holding in Rajesh Exports.

 

Company clarification

 

Meanwhile, Rajesh Exports clarified that the company rejects all adverse media reports appearing with regard to Sebi’s interim order. The company, it said, will issue a media release which would clarify and settle the unnecessary speculation.

 

The company said the order is interim and there has been no any adverse conclusion on any aspect arrived by SEBI. The revenues declared by the company are correct and there is no over stating of revenues. There seems to be some type of communication gap and confusion between SEBI and the company, Rajesh Exports said. 

 

At the bourses, Rajesh Exports stock trades under ‘Z’ group – a high-risk category for companies that have failed to comply with strict exchange regulations, have unresolved investor grievances, or have failed to dematerialize their shares.

 

All trades in Z group stocks are settled on a Trade-for-Trade (T2T) basis. This means intraday trading is strictly prohibited; every purchase requires the actual physical delivery of shares.

 

Share price of Rajesh Exports have tanked 56 per cent from its 52-week high level of ₹239 touched on December 22, 2025. It had hit a 52-week low of ₹80.11 on April 2, 2026.