The Bombay Stock Exchange (BSE) has issued a stark warning to investors regarding RRP Semiconductor , following an unprecedented 12,500% increase in the company's stock price over the past year. This advisory comes amidst concerns over misinformation circulating on social media platforms and uncertainty surrounding recent developments.

Stock Price Surge and Valuation Concerns

RRP Semiconductor's stock has experienced a meteoric rise, climbing from Rs 15.00 to Rs 11,784.00 per share since April 2024. This extraordinary growth has pushed the company's price-to-earnings (P/E) ratio to an alarming 1,410 times, significantly outpacing the benchmark NSE Nifty 50's P/E ratio of 23 times.

BSE's Concerns and Company Actions

The BSE cited two primary reasons for issuing the investor advisory:

1. Misinformation circulating on social media
2. Uncertainty around recent developments related to the company

In response to these issues, RRP Semiconductor has taken the following actions:

• Filed a police complaint against misleading stock recommendations spread illegally on social media platforms
• Denied any association with former cricketer Sachin Tendulkar
• Refuted claims of Maharashtra government land allotments

Corporate Governance Measures

In a significant move, RRP Semiconductor's board is considering withdrawing preferential equity share allotments previously issued to both promoters and non-promoters. This decision could potentially impact the company's shareholding structure and future stock performance.

Investor Caution Advised

Given the extraordinary price movement and the concerns raised by the BSE, investors are urged to exercise caution and conduct thorough due diligence before making any investment decisions related to RRP Semiconductor. The situation underscores the importance of verifying information from reliable sources and being wary of unsolicited stock recommendations, especially those circulating on social media platforms.

As the story continues to unfold, market participants will be closely watching for any further developments or regulatory actions concerning RRP Semiconductor and its stock performance.

RRP Semiconductor Limited , a company listed on the Bombay Stock Exchange (BSE), has taken a firm stance against the spread of misinformation by filing a police complaint regarding misleading social media content about the company. The semiconductor firm has clarified several false claims circulating on platforms like YouTube, which have potentially led to unprecedented price movements in its shares.

Key Clarifications from RRP Semiconductor

The company has addressed several misrepresentations about its operations and associations:

1. Current Operations: RRP Semiconductor has not yet commenced any semiconductor manufacturing activities.
2. Government Relations: The company has not made any applications under any government policy.
3. Celebrity Associations: Contrary to circulating claims, the company has no association with any celebrities, including legendary cricketer Sachin Tendulkar, who is not a shareholder.
4. Share Lock-in: 99% of the company's issued and paid-up capital, resulting from preferential allotment, is under lock-in with depositories until March 31, 2026.
5. Export Claims: The company refuted claims of exporting ASIC chips or conducting export business worth Rs. 6.15 crore.

False Claims Circulating on Social Media

The company highlighted specific misleading claims made in a YouTube video:

Market Impact and Company's Concerns

RRP Semiconductor expressed concern over the unprecedented price movement of its shares on the BSE, which it attributes to the circulation of false information. The company emphasized that only around 4,000 shares are in demat mode, suggesting that the trading activity could be detrimental to its reputation.

Call for Investigation

In its complaint, RRP Semiconductor has requested authorities to investigate the matter and take appropriate action against those responsible for disseminating misleading and false content. The company warns that such misinformation could lead investors to make uninformed decisions, potentially resulting in significant financial losses.

Investor Advisory

Given the sensitive nature of the situation and the potential for market manipulation, investors are advised to exercise caution and rely on official company communications and regulatory filings for accurate information about RRP Semiconductor Limited.

This incident underscores the growing challenge of misinformation in the digital age and its potential impact on financial markets. It serves as a reminder for investors to verify information from credible sources before making investment decisions.