Penny Stock Multibagger Return: A semiconductor stock rose from Rs 15 to Rs 11,900 in less than two years. Has given returns of more than 79,000% in just 20 months. Know how there was such a huge rise in the stock?
RRP Semiconductor Share Return: By now you must have heard the story of many penny stocks becoming multibaggers in the stock market, but one semiconductor has done wonders. In just 20 months, this share of Rs 15 jumped 79,000% to reach Rs 11,902. Its returns during this period were very shocking. Its speed surprised not only the country but the entire world and forced SEBI and BSE to keep a close watch on this stock. Market regulator Securities and Exchange Board is investigating its rise, trading has also been banned.
15 rupee share, returns are surprising
In April 2024, shares of RRP Semiconductor were trading at around Rs 15. At that time it was a name which only a few people in the market knew. But in the next 20 months the same stock rose by about 793 times. It made a 52-week high of Rs 11,902 in November and closed at Rs 11,095 on December 15. Such a fast pace surprised not only small investors but the entire market.
RRP Semiconductor Share: SEBI’s action
Seeing the astonishing growth of the stock, SEBI and BSE also kept their eyes on it. Regulators put the stock under strict surveillance. Now the situation is such that the shares of RRP Semiconductor can trade only once a week, that too with 1% price band. The result was that this stock has slipped about 6% from its top. What is even more shocking is that according to BSE data, on an average only 19 shares are being traded in this stock in a week.
RRP Semiconductor: Record returns despite decline
RRP Semiconductor shares have fallen 2.97% in the last one month. But despite this the figures are shocking, there was an increase of 529.75% in the last 6 months, 6,897.76% in 1 year and 5,881.11% on year-on-year basis. At present, the stock is under strict surveillance and trading has been limited since December 15.
RRP Semiconductor Share: How did it rise so much?
Indian Nvidia tag
There are no reasons behind this rise in shares like strong business or excellent earnings. In 2024, the company shifted itself from real estate and trading to the theme of semiconductors and digital chips. Name changed to RRP Semiconductor. In the same wave of atmosphere created in India regarding AI and semiconductor sector, investors tagged this stock as ‘Indian Nvidia’. The reality is that the company has no direct connection with actual semiconductor manufacturing, but the market of expectations was already heated.
Low share, high bounce game
Another important factor in its speed is its very low free-float. More than 98% of the company’s shares are held by the promoters and people associated with them. Only about 2% shares left for public. In such a situation, even a little buying pressure took the stock to the upper circuit again and again. According to reports, this stock remained stuck in the upper circuit 149 consecutive times. That means there are more buyers and less sellers.
social media hype
The third factor was social media hype. Rumors spread on online platforms that the company had got government land or that Sachin Tendulkar was associated with it. Later the company itself had to come forward and say that all these claims were false and even a police complaint was lodged against such rumours. It so happened that in September 2024, Maharashtra Chief Minister Devendra Fadnavis and cricket legend Sachin Tendulkar had attended the inauguration program of an electronics unit of the company. After this event, the discussion intensified on social media whether Tendulkar had invested in the company or the government had given the land. However, the company clarified in its stock exchange filing that it is neither a celebrity investor nor has it applied for any government incentive scheme.
Weak financials increase concerns
A major reason for SEBI’s investigation is the company’s weak financial figures. RRP Semiconductor’s turnover is reported to be only Rs 2.11 lakh, while it incurred a loss of more than Rs 7 crore in the July-September 2025 quarter. Despite this, before the ban on trading, the market cap of the company had reached around Rs 15,116 crore. This contradiction became a big red flag for regulators.
Only two employees, complete control of the promoter
The current structure of RRP was formed in April 2024, when Rajendra Chodankar acquired a company named GD Trading and Agencies. There were only two employees in this company at that time. During the acquisition, ₹8 crore of debt was converted into equity, taking Chodankar’s stake to 74.5%. Later the board allotted shares to a select few people at a price of ₹12 per share, which was about 40% less than the then market price. After this the name of the company was changed to RRP Semiconductor. Today the situation is that about 98% of the shares are with the promoters and people associated with them.
Disclaimer: This article has been written for information purposes only. The stock market related information, figures and views given herein are not investment advice. Investing in the stock market is subject to risk. Before investing in any stock, definitely consult your financial advisor.