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LIC’s shares crashed, as much as 300 crores in water? Rajesh Exports’ alleged scam hits hard

Samira Vishwas | June 10, 2026 8:24 PM CST

Rajesh Exports Scam: Shares of Rajesh Exports, which operates in the gold and jewelery business, continue to fall. During trading today, Wednesday, June 10, the stock hit a ‘lower circuit’ of 5 percent for the fifth consecutive session. Its effect was also reflected in the shares of LIC. 300 crores has been hit. What exactly is the case? Let’s understand.

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Fall after SEBI’s allegations

The share price fell to Rs 84.66 on the back of massive selling pressure. The stock has continued to fall following serious allegations made by market regulator SEBI. As a result, investors have lost billions of rupees.

Stocks continue to fall

Shares of Rajesh Exports have fallen by around 22.6% in the last week. The stock has lost more than 30% in one month, 55% in six months and nearly 58% in the last year. The fall in the share price further intensified after the Union Ministry of Heavy Industries excluded the company from the ‘Production Linked Incentive’ PLI scheme for ‘advanced chemistry cell’ ACC battery storage. As the ACC battery business is an important part of the company’s future projects, the decision to disqualify the company from the scheme will come as a major blow.

Where exactly did things go wrong?

In a recent 109-page interim order, SEBI alleged that the company had inflated its revenue to Rs 15.15 lakh crore for the financial years 2020-21 to 2024-25; This figure was actually about 99.8% of the total revenue of the company’s subsidiaries. Sebi accused the company of misappropriation of funds and dubious dealings with parties. As a result, the regulatory body barred the company’s promoter and chairman Rajesh Mehta from trading in the stock market with immediate effect and ordered a forensic audit of the company’s accounts.

How much investment of LIC?

FIIs’ share of ‘Foreign Institutional Investors’ in the shares of this company has been steadily decreasing over the last three years; It has come down from 17.6% in March 2023 to approximately 14.26% by March 2026. Rajesh Exports has a market capitalization of Rs 3,090 crore and LIC owns 10.80% stake in the company, which means that Life Insurance Corporation of India has invested over Rs 300 crore in the company.

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