55,000% Returns in Just 20 Months! How an Unknown Indian Company Shook the Stock Market

RRP Semiconductor Ltd., a little-known Indian company, has stunned the stock market with a 55,000% surge in its share price over the last 20 months. What makes this rise even more extraordinary is that the company has only two full-time employees and has not started production yet.

The Phenomenon

RRP Semiconductor’s shares soared despite the company posting losses in its latest financials. Investors were initially puzzled, as the company shifted from real estate to semiconductors in early 2024, without any tangible production output. However, limited share availability, online hype, and a growing base of retail investors propelled the stock to unprecedented heights. The stock hit the upper circuit 149 times consecutively.

Regulatory Concerns

The Securities and Exchange Board of India (SEBI) has now intervened. Bloomberg reports that SEBI is investigating the sudden price surge to rule out any market manipulation. Meanwhile, the exchange has restricted trading to one day per week. After peaking on 7th November, the stock has fallen roughly 6%.

Why Investors Are Flocking

With the global AI boom and limited Indian semiconductor companies publicly listed, retail investors are keen to invest in any stock appearing connected to chip manufacturing. India initiated a ₹760 billion semiconductor incentive program in 2021, attracting investment from Micron, Tata Group, Foxconn, and HCL Technologies, totaling around $18 billion.

Share Concentration and Warnings

Approximately 98% of RRP shares are held by Rajendra Chodankar and a few associates, many of whom are linked to other RRP subsidiaries, including RRP Defense, Indian Link Chain Manufacturers, RRP Electronics, and RRP S4E Innovation. SEBI has repeatedly warned investors, placing the stock under strict surveillance for over a year due to past compliance issues linked to the Vindhya Paper Mills founder group. The company had faced a 10-year ban in 2017 for regulatory violations.

Company Status and Controversies

RRP has officially stated it has not begun semiconductor production and has not applied for any government incentives. It has also denied connections with celebrities or rumors linking it to Sachin Tendulkar. For the September quarter, RRP reported negative revenue of ₹6.82 crore and a net loss of ₹7.15 crore. Despite these realities, retail enthusiasm and limited supply have created an extraordinary market phenomenon that has captured global attention.