LIC maintains 10% stake in Rajesh Exports despite nearly 70% stock fall in last 14 months

Despite the governance lapses, the current shareholding pattern reveals that LIC holds around 10.8 percent stake in the company, a minor dip from 10.9% in December 2023.

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26 Aug, 2025 12:21

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State-owned Life Insurance Corporation of India  continues to hold onto its approximately 10% stake in Bangalore-based gold jewelery retailer Rajesh Exports despite the nearly 70% loss in stock value since its peak last year.

Over the past year, Rajesh Exports' shares have plummeted by over 50 percent, attributed to a series of controversies and financial setbacks. Since its peak of Rs 946.85 in February 2023, the stock has fallen 67 per cent and currently trades at Rs 306.60.  It commands a marketcap of Rs 9,077 crore. The company has been entangled in various compliance-related issues, including instances of missing documents during earnings filings and tax-related controversies, coupled with declining revenues.

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In 2023, the National Stock Exchange (NSE) sought clarification from Rajesh Exports for its failure to disclose its cash-flow statement for FY23. Media reports indicated that the company had neglected to disclose half-year cash-flow statements and proper audit reports alongside quarterly results for the period ending September 2023.

Much earlier, in 2013, a non-bailable arrest warrant was issued against Prashant Mehta, MD of the company, in connection with a case alleging the sale of gold jewelry meant for export in the domestic market.

Despite the governance lapses, the current shareholding pattern reveals that LIC holds around 10.8 percent stake in the company, a minor dip from 10.9 percent in December 2023. No other domestic institution owns the stock, nor is the stock covered by any prominent brokerage houses. Promoters hold around 54.55 percent stake in the company, with foreign institutional investors (FIIs) such as Bridge India Fund holding approximately 15.8 percent.

Rajesh Exports has faced consecutive quarters of weak financial results, with revenues declining by 31% YoY in Q3FY24.

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