RRP Semiconductor’s stock surges 55,000%, triggers regulatory concerns

The BSE has put RRP Semiconductor under the Additional Surveillance Measure (ASM) framework. This tool is jointly implemented by the SEBI, the BSE and the NSE. It is used to flag stocks that exhibit abnormal price movements, extreme volatility or a sharp disconnect between market valuation and underlying fundamentals. To be sure, trading in the stock has not yet been frozen by the exchanges.

Markets regulator SEBI has not responded to queries from The Indian Express.

In a statement issued on Thursday, the BSE said, “in the context of RRP, the company was placed under enhanced surveillance measures in a phased manner. Initial actions included tighter price bands and trade-to-trade settlement, followed by periodic call auctions. The exchange also issued cautionary public advertisements urging investors to exercise due diligence.”

“Further tightening was introduced for companies exhibiting abnormal trading patterns, such as consistent upper circuit hits or extreme valuations, resulting in RRP and other identified entities being moved to once-a-week trading with a one per cent price band effective November 2025,” the BSE said. These measures were widely communicated through investor advisories and market circulars, reflecting the BSE’s proactive approach to investor protection and market integrity, it said.

In an exchange filing dated November 3, the company sought to distance itself from several claims circulating in the public domain. “Our company is engaged in the business of semiconductors. The company has yet to start any sort of semiconductor manufacturing activities,” RRP Semiconductor stated. The company has not applied under any government semiconductor policy and has no celebrity association whatsoever, it added.

RRP Semiconductor has categorically denied reports suggesting export activity or marquee endorsements. “The company is not exporting ASIC chips and has not done business of Rs 6.15 crore by export. The company has no relation with legendary cricketer Sachin Tendulkar and he is not a shareholder of the company,” it said. The firm also flagged the circulation of misinformation on social media, where stock recommendations and exaggerated claims were allegedly being spread “illegally and without any basis”, potentially misleading retail investors.

For the latest reporting period, the company disclosed negative revenue of Rs 6.82 crore and a net loss of Rs 7.16 crore for the September 2025 quarter. However, the market has priced RRP Semiconductor at a valuation comparable to established industrial players.

RRP Semiconductor’s promoter shareholding stands at just 1.27 per cent. Shareholder Rajendra K Chodankar holds 73.96 per cent of the company’s equity. Such concentration, coupled with thin public float, often amplifies volatility and makes stocks vulnerable to sharp price swings, speculative trading, and manipulation.

In a media release earlier, the BSE said the company, through a letter dated November 5, informed that its board of directors proposes to consider the withdrawal of a preferential allotment of shares earlier issued to promoters and non-promoters. This move has added to uncertainty around the stock.

“In view of the apparent misinformation in the public domain and the uncertainty attached to various events associated with the company, investors are urged to exercise extreme care and caution while transacting in the securities of the said company,” the BSE cautioned. Market participants say this episode underscores a broader concern confronting regulators.