About Rajesh Export?
Rajesh Exports is a publicly traded company listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) of India. It is a major player in the Indian gold and diamond jewellery industry and has a strong international presence.
- Rajesh Exports Limited is headquartered in Bangalore, Karnataka, India. It operates primarily as a gold retailer and is involved in refining, designing, and selling gold and jewelry.
- The company was incorporated in 1989 and has since grown to become a global leader in the gold business
Here are some additional details about Rajesh Exports:
- They were founded in 1988 by brothers Rajesh Mehta and Prashanth Mehta.
- They are headquartered in Bangalore, India.
- They have a workforce of over 10,000 employees.
- They have received numerous awards for their quality and design, including the “Exporter of the Year” award from the Gem & Jewellery Export Promotion Council (GJEPC).
Rajesh Export Business
Rajesh Exports is a large Indian company involved in the gold and diamond jewellery business. They operate across the entire value chain, from refining gold to manufacturing and selling jewellery. Here’s a summary of their activities:
- Gold refining: Rajesh Exports is one of the largest gold refiners in India. They source gold from various countries and refine it to meet international standards.
- Jewellery manufacturing: Rajesh Exports manufactures a wide range of gold and diamond jewellery, including handmade pieces, casting jewelry, machine chains, and studded jewelry. They have manufacturing facilities in India and other countries, with a combined capacity to produce approximately 400 tons of gold jewelry per year.
- Exports: Rajesh Exports is a major exporter of gold and diamond jewellery. They sell their products to various countries around the world, particularly in the Middle East, Europe, and the United States.
- Retail: Rajesh Exports also sells its products in India through a network of retail showrooms under the brand name “SHUBH Jewellers.”
Why Rajesh Exports Share Is Falling?
Rajesh Export – Golden opportunity or classic trap?
All Shubh Jewellers Shops Closed!!! NOT FUNCTIONAL
Shubh Jewellers, a retail chain under Rajesh Exports, initially expanded to 80 stores across Karnataka. However, most of these stores have faced closures due to several challenges. One major issue has been repeated raids and scrutiny by state authorities over allegations of tax evasion and trade-related activities, which has impacted their operations and reputation. Additionally, while Rajesh Exports continues to thrive in the gold export business, its retail operations under Shubh Jewellers have not made significant headway in the competitive jewellery retail market. This is partly due to the brand’s positioning and market perception, which has struggled to transition from a larger mom-and-pop store model to a recognized retail brand (Forbes India, DNA India).
These factors, coupled with intense competition in the jewellery sector and operational challenges, have contributed to the closure of many Shubh Jewellers stores.
Peer Comparison
Valcambi SA Updates for Rajesh Exports
Valcambi SA, based in Balerna, Switzerland, is one of the world’s largest precious metals refineries. In 2015, Rajesh Exports Limited (REL), a major player in the gold and diamond jewelry market, acquired Valcambi through its Singapore subsidiary, Global Gold Refineries Ltd.
Ownership Structure
- Global Gold Refineries Ltd: This Singapore-based entity is the primary owner of Valcambi SA. The acquisition deal was structured such that Global Gold Refineries Ltd is owned 95% by REL Singapore PTE Ltd and 5% by Rajesh Exports Limited.
- Acquisition Details: Rajesh Exports acquired Valcambi for $400 million. This acquisition included purchasing the entire shareholding of European Gold Refineries Holding SA, which held 100% of Valcambi.
Shareholding Pattern for Rajesh Exports Limited and its Subsidiaries
Rajesh Exports Limited (REL)
Rajesh Exports Limited is a major player in the gold and diamond jewelry industry, headquartered in India. The shareholding pattern as of the latest quarter (March 2024) is as follows:
| Shareholder Category | Percentage |
|---|---|
| Promoters | 54.55% |
| Foreign Institutional Investors (FII) | 15.08% |
| Domestic Institutional Investors (DII) | 11.08% |
| Retail and Others | 19.28% |
Promoter holdings have remained stable over recent quarters, reflecting consistent confidence in the company’s future by the management. The proportion of holdings by foreign and domestic institutions also indicates a balanced interest from institutional investors (ET Money) (Zerodha Markets).
REL Singapore PTE Ltd
REL Singapore PTE Ltd is a wholly-owned subsidiary of Rajesh Exports Limited. It serves as a strategic entity for the international operations of REL, including the acquisition of Valcambi SA.
- Ownership: 100% owned by Rajesh Exports Limited
Valcambi SA
Valcambi SA is a prominent Swiss-based precious metals refinery, fully owned by Global Gold Refineries Ltd, which in turn is owned by REL Singapore PTE Ltd. The acquisition structure can be summarized as follows:
- Global Gold Refineries Ltd: This entity holds 100% of Valcambi SA.
- REL Singapore PTE Ltd: Owns 95% of Global Gold Refineries Ltd.
- Rajesh Exports Limited: Directly owns the remaining 5% of Global Gold Refineries Ltd.
Detailed Valuation and Ownership Impact
Given the current market conditions and historical performance, Valcambi SA’s valuation would typically reflect its significant refining capacity and market position. For instance, assuming a hypothetical valuation of $500 million for Valcambi SA:
- Direct Holding by Rajesh Exports Limited:
- 5% of $500 million = $25 million.
- Indirect Holding through Global Gold Refineries Ltd:
- 95% of $500 million = $475 million.
Therefore, the total valuation impact on Rajesh Exports Limited from its holdings in Valcambi SA would be approximately $500 million.
Shareholding Pattern
