Semiconductor Stock: This stock, which has gained the most at 55,000% in the country, has come under the radar of the exchange.

News Topical, Digital Desk : Semiconductor Stock: A stock is currently generating significant buzz on social media. With this buzz, it has now come under the radar of exchanges. We are talking about RRP Semiconductor Ltd. According to recent updates, exchanges have restricted trading in this stock. The stock's homepage on the Bombay Stock Exchange (BSE) clearly states, "Trading Restricted on account of Surveillance Measures."

According to BSE, RRP Semiconductor has been placed under Stage-1 of the Long-term Additional Surveillance Framework (LASF) and Stage-0 of the GSM (Graded Surveillance Measure). The exchange has also issued a message for investors, "Caution For Investors – RRP Semiconductor."

Rise in 287 out of 289 sessions
Between September 10 last year and November 7 this year, RRP Semiconductor registered gains in 287 out of 289 trading sessions, while the stock remained unchanged in the remaining two sessions. A 2% circuit limit was imposed on the stock from October 2024, which remains in place.

Now trading only once a week
After coming under additional surveillance from October 11, the stock is allowed to trade only once a week, and that too within a price band of 1%. Following this, the stock has closed with a decline of 1% on each of the last six Mondays.

Volumes Extremely Low
During these 289 trading days, RRP Semiconductor's highest volume of 2,147 shares was traded on September 18th. The average trading volume during this period has ranged from single digits to low double digits, raising questions about the stock's liquidity. According to the company's latest annual report, RRP Semiconductor employs only two full-time employees, which is another important indicator for investors. 

The company's statement on regulatory issues In a filing in April this year, the company had stated that it was taking appropriate steps regarding the order withdrawing the approval of preferential shares. The company had stated in the statement that the management is committed to protecting the interests of all stakeholders and the growth of the company. 

Promoter and Shareholding Structure RRP Semiconductor was founded by Rajendra Chodankar. He had repaid the founders' debt of ₹8 crore to acquire GD Trading and Agencies Ltd. According to a report, in April 2024, GD Trading's board agreed to issue shares to Chodankar and others at ₹12 per share, a 40% discount to the prevailing market price at the time. The report also stated that about two months ago, Chodankar formed a new company called RRP Electronics Pvt. Ltd., with the aim of setting up an outsourced semiconductor assembly and testing facility in Maharashtra. 

Retail investors hold very low stakes. As of September shareholding, Chodankar and his close associates hold more than 90% of the company's shares. Meanwhile, 528 retail investors with authorized share capital of up to ₹2 lakh hold a combined 1.12% stake. Due to sharp fluctuations, extremely low volumes, and limited trading, RRP Semiconductor's stock is currently under close scrutiny from both investors and regulators.

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