New Delhi, June 4 -- A clutch of non-resident Indians (NRIs) and foreign portfolio investors (FPIs) divested a large chunk of their shareholding over the past three years at the expense of small retail shareholders in Rajesh Exports, the company in regulatory crosshairs for alleged misrepresentation of financial statements.

Interestingly, as these institutional and wealthy investors sharply pared their stakes, the company's share price plunged by a staggering 87% over three years through 30 March this year, for which the latest shareholding pattern is available.

Retail investors holding up to Rs.2 lakh each held just 1.6% of the company's equity capital as of 31 March 2023. That quarter, NRIs held a 13.77% stake, and FPIs held a 17.60% ...