RRP Semiconductor Share Jumps Over 55,000 Per Cent in 20 Months, Triggers Investor Warnings

A stock called RRP Semiconductor Ltd, which has risen more than 55,000 per cent in 20 months, has raised eyebrows among the investors and regulators. With the sharp climb, the share had become the highest gainer among all listed firms with a market value above 1 billion dollars.

Start of Stock Rally

RRP Semiconductor, which is listed on the Bombay Stock Exchange (BSE), was not widely known until early 2024. As the stock became popular on social media, more people started buying the shares, resulting in a sharp rise in the price.

For 149 trading sessions in a row, the stock hit its daily upper limit, which is the maximum percentage a stock is allowed to rise in a single day, a Bloomberg report said.

Regulatory Intervention

This unusual pattern of continuous gains raised concerns. The Securities and Exchange Board of India (SEBI) has started looking into the matter. According to a person familiar with the situation, SEBI is examining whether there was any wrongdoing behind the price surge. The BSE has already taken action by limiting the stock's trading to just one day a week. Since reaching its highest point on November 7, the stock has declined by 6 per cent.

A spokesperson for BSE said that all actions related to RRP Semiconductor were shared through official market notices. When contacted by Bloomberg News, RRP Electronics, which is owned by Chodankar, declined to comment, saying that a legal appeal was in progress.

Company Details

The company's rise began when businessman Rajendra Chodankar took control of a firm called G D Trading and Agencies Ltd in early 2024. He did this by paying off a loan of 80 million rupees that the company owed to its original owners. In return, he and a few others were given shares at 12 rupees each, which was 40 per cent lower than the market price at that time. This deal gave Chodankar a 74.5 per cent ownership in the company, while the founders' share fell to less than 2 per cent. The company was then renamed RRP Semiconductor.

Two months before this takeover, Chodankar had set up a private company called RRP Electronics Pvt. Ltd. with plans to build a facility in Maharashtra for assembling and testing semiconductor components. Although this private company is not the same as the listed RRP Semiconductor, the connection between the two may have helped create the impression that the listed firm was part of the booming semiconductor sector.

Despite this impression, RRP Semiconductor's financial records show that it has not earned any revenue recently. Its annual report also shows that it employs only two people. Still, the stock's rise was driven by a combination of online excitement, a small number of shares available for trading, and a growing number of individual investors in India looking to benefit from the global interest in artificial intelligence and chip-making.

Similar Trends in Other Countries

Similar situations have been seen in other countries as well. In China, a company called Moore Threads Technology Co., which makes AI chips, saw its stock fall by 13 per cent on December 12 after warning investors about trading risks. Even after the drop, the stock was still up more than 500 per cent since it was listed earlier in the month. In South Korea, the stock of SK Hynix Inc. fell after the country's main stock exchange issued a warning on December 11. Before that, the company's shares had more than tripled in 2025.

The sharp rise in RRP Semiconductor's stock price, followed by regulatory attention and trading restrictions, serves as a reminder of the risks involved in chasing fast-growing stocks without understanding the company's actual business. For many investors, especially those new to the market, this case highlights the importance of careful research and caution.