Shares of Rajesh Exports remained under heavy selling pressure on Friday, hitting the 5% lower circuit for the second consecutive session as investors continued to react to Sebi’s interim order against the company and its promoter-chairman Rajesh Mehta.
, extending losses from Thursday when it had also ended locked at the lower circuit. The sharp decline comes after market regulator Sebi alleged large-scale financial misrepresentation and questioned revenues worth Rs 15.15 lakh crore attributable to subsidiaries between FY21 and FY25.
The latest fall has further eroded investor wealth and pushed the company’s market capitalisation to around Rs 1,334 crore.
The sell-off marks a dramatic turn for a company that once reported annual revenues running into several lakh crore rupees and owns Valcambi in Switzerland, widely regarded as the world’s largest gold refinery.
Investor sentiment was hit after earlier this week, restraining Rajesh Mehta from accessing the securities market and ordering a fresh forensic audit.
The regulator’s action followed a forensic review that stemmed from a shareholder complaint regarding the company’s financial disclosures and large outstanding receivables.
In its order, attributable to subsidiaries between FY21 and FY25 may have been inflated.
The regulator also noted that between 97% and 99% of Rajesh Exports’ consolidated income during the period came from subsidiaries and branches.
Sebi said detailed financial information and transaction-level records relating to certain overseas entities were not made available despite repeated requests during the audit process.
The findings are preliminary and the investigation is continuing.
The market reaction has drawn fresh attention to Rajesh Exports, one of India’s most unusual listed companies.
Founded by Rajesh Mehta and headquartered in Bengaluru, the company operates across refining, jewellery manufacturing, exports and retail.
Its biggest asset is Valcambi, the Switzerland-based precious metals refinery that Rajesh Exports acquired in a $400 million deal in 2015.
The company also operates jewellery stores under the SHUBH Jewellers brand and has often said it has a presence across the entire gold value chain.
What made Rajesh Exports stand out was the scale of its reported revenues.
According to figures cited in Sebi’s order, the company reported consolidated revenue of nearly Rs 7.78 lakh crore in FY26, up from about Rs 4.23 lakh crore in FY25.
Yet despite these enormous sales figures, profits remained thin.
In the March 2026 quarter, Rajesh Exports reported revenue of Rs 2.36 lakh crore but posted a net loss of Rs 53.5 crore.
Rajesh Exports has strongly disputed Sebi’s observations.
In a statement issued after the interim order, the company said there had been “no adverse conclusion” reached by the regulator and maintained that its reported revenues were accurate.
“The revenues declared by the company are correct and there is no over stating of revenues,” the company said.
Rajesh Exports added that there appeared to be a “communication gap and confusion” between the company and Sebi and said it was in the process of submitting all relevant documents and clarifications sought by the regulator.
The company also said it was confident that Sebi would arrive at the correct conclusion once all authenticated documents were reviewed.
For investors, the focus is now on the next steps in the regulatory process.
Sebi’s order is interim in nature and the company will have an opportunity to present its case before the regulator reaches a final conclusion.
However, until greater clarity emerges, uncertainty surrounding the investigation is likely to remain a key overhang on the stock.
The two-day slide shows that investors are taking a cautious view, even as Rajesh Exports insists that its financial reporting is accurate and that it will cooperate fully with the regulator’s ongoing review.