Rajesh Exports shockwave hits LIC stock post Sebi crackdown; analyst weighs

LIC stake in Rajesh Exports: LIC shares traded under pressure today following developments related to Rajesh Exports, in which the insurer holds a 10.8 per cent stake.

LIC stake in Rajesh Exports: Life Insurance Corporation of India (LIC) shares traded under pressure on Thursday following developments related to Rajesh Exports, in which the insurer holds a 10.8 per cent stake, according to the March 2026 quarter shareholding data available on the BSE.

 

The stock opened lower at ₹400.50 on the National Stock Exchange (NSE) and traded in a narrow range during the session. It touched an intraday low of ₹396.60, down nearly 1.5 per cent.

 

As of 1:50 PM, LIC shares were trading 1 per cent lower at ₹398.50, with nearly 2 million shares changing hands on the NSE.

 

 

Rajesh Palviya, senior vice president (head of research) Axis Securities, said that LIC is not only reacting to Sebi's action against Rajesh Exports' promoter, but is also facing pressure due to the government's proposed stake sale through an offer for sale (OFS). 

Notably, the government has announced plans to diluting nearly 2 per cent of its holding. 

 

"This OFS news is weighing on the LIC share price. Also, the recent Rajesh Exports news has added to the negative sentiment, but it is unlikely to have any material impact on LIC's financial performance. Its effect is largely sentiment driven rather than fundamental," he said.

 

Rajesh said that OFS is expected to keep the stock under pressure until details are announced. "Once there is clarity on the OFS pricing, acceptance ratio and related details, the stock will likely stabilise," he said.

 

From a technical perspective, he said that the stock structure remains weak. The next support zone is around ₹385-380. "Unless the stock moves decisively above ₹430, the trend is likely to remain negative, making any rise in price an opportunity to sell," the analyst added.

 

Earlier on Wednesday, Sebi in an order alleged that jewellery maker Rajesh Exports inflated its ​revenue scale over years, largely via unverified overseas ​entities, to the tune of 15.15 trillion rupees ($158.30 billion). The regulator barred the company and its owner from the securities markets till it completes its investigation.

 

The regulator also directed the company to make true and fair disclosures of their financial statements, related party transactions and other disclosures under the Listing Obligations and Disclosure Requirements (LODR) regulations.  ==================================== 

Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised.