Rajesh Exports on LIC 10.8% stake amid SEBI scrutiny

What Rajesh Mehta told PTI

Rajesh Exports Chairman Rajesh Mehta has publicly distanced himself and the company’s promoters from Life Insurance Corporation of India’s (LIC) investment in the gold jewellery exporter. Speaking to news agency PTI amid regulatory scrutiny, Mehta said LIC accumulated shares independently through stock market purchases over a long period. He stressed that neither the company nor its promoters had any role in LIC’s decision-making.

LIC’s stake and how it was built

LIC currently holds a 10.80 percent stake in Rajesh Exports, according to the report. Mehta said the insurer did not buy shares “yesterday or last year”, but over roughly 20 years. He added that the purchases were made from the open market, through the stock market. The remarks seek to position LIC’s exposure as the result of incremental secondary-market buying rather than any one-time deal with the company.

Promoters deny any direct share sale or placement

Mehta made a categorical assertion that promoters did not sell their shares to LIC. He also said the company did not make any placement of shares to LIC. According to him, neither the company nor promoters benefited “in any manner” from LIC buying shares in the secondary market. The statement comes as questions have been raised about how the state-run insurer built a meaningful stake in a company facing regulatory heat.

“No contact, no connection”: Mehta on relationship with LIC

Mehta said Rajesh Exports has no relationship with LIC when it comes to the insurer’s investment decisions. In the interview, he claimed the company had no contact or connection with LIC and did not even know where LIC’s office is. He described LIC’s market purchases as the insurer’s own decision, taken in a “prudent commercial manner”. LIC, for its part, has not commented in the report on its position in Rajesh Exports or on any future investment strategy related to the stock.

Regulatory scrutiny and the SEBI lens

The report places Mehta’s comments against the backdrop of regulatory scrutiny involving Rajesh Exports. It also references concerns in early inquiry stages, where the capital markets regulator SEBI is said to have taken a serious view of alleged irregularities. Separately, the report mentions an accusation that the company inflated revenues by ₹1,515,000 crore. The company’s chairman’s remarks focus on LIC’s stake build-up and the lack of promoter involvement, rather than detailing the regulatory process.

Stock moves and investor focus

The report notes that Rajesh Exports has seen a sharp erosion in its share price. One reference in the provided text says the stock was “frozen” at 94.5, without additional trading-day context. Against this market backdrop, LIC’s holding has become a point of discussion because the insurer is a large institutional investor and its portfolio is closely watched. Mehta, however, maintained that the company’s management did not influence LIC’s buying.

Mehta’s view on gains, losses, and retail shareholders

Mehta said that even after the stock’s decline, LIC may not have lost money on its Rajesh Exports holding, based on his understanding of LIC’s accumulated purchase price. He also argued that if LIC were to incur losses, the “counter-gainer” would be the common Indian public who sold shares to LIC over the years. In his framing, LIC’s secondary-market buying implies a transaction where selling shareholders received proceeds, regardless of what happens later to LIC’s mark-to-market value. These remarks are part of his broader attempt to separate the company from the insurer’s investment outcomes.

Political questions around LIC exposure

The report also points to political scrutiny, including a Congress question on LIC’s 10.8 percent stake in a company under the SEBI lens. The reference implies concerns about whether there was any influence behind LIC’s investment decisions. Mehta’s response rejects the premise that the company had any role, repeating that the stake was built gradually via market purchases and not through promoters or placements.

Key facts at a glance

Why this matters for investors

The episode highlights how institutional holdings can become part of public debate when a company is under regulatory scrutiny and its stock price is volatile. Mehta’s statements focus on two issues that matter to shareholders: whether LIC’s position was influenced by promoters, and whether any preferential route like placements or direct sales was used. By insisting LIC bought only through the secondary market over a long period, he is attempting to address perceptions around governance and related-party influence. The other key point for market participants is that LIC has not, in the provided text, publicly outlined its stance on the holding.

Conclusion

Rajesh Exports Chairman Rajesh Mehta has rejected suggestions that the company or promoters influenced LIC’s 10.80 percent stake build-up, saying the insurer accumulated shares via open-market purchases over around two decades. With the company facing SEBI scrutiny and political questions around LIC’s exposure, investor attention is likely to remain on regulatory developments and any future communication from LIC or the company.