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

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.