It’s not new that the share price of a company rises defying its fundamentals irrespective of whether it is a bull, bear or sideways market
It was widely tracked after the stock rose from a mere ₹15, in April 2024, to as high as ₹11,902, a mind-boggling gain of 73,246 per cent. It is now ruling at ₹11,666.60.
Key triggers
Key triggers behind the astronomical rise in the share price were that legendary cricket star Sachin Tendulkar had invested in the company or joined as an adviser or ambassador; the Maharashtra government had allotted the company 100 acres. And it said that nearly all of the company’s stock remained locked-in until March 2026, insinuating that insiders were not trading its shares.
Promoters hold just 1.27 per cent stake in the company. However, small investors increased from 101 to 528, though their stake reduced mildly — from 1.14 per cent in June 2024 to 1.12 per cent.
For FY25, the company posted revenues of ₹31.59 crore and profit of ₹8.56 crore. However, in June quarter, it did not post any revenues.
Regulatory action
BSE has issued a warning to investors and traders about RRP Semiconductor due to an unusual and sharp increase in its stock price that is not backed by the company’s financial performance. The premier bourse has also placed the stock under the Enhanced Surveillance Measure (ESM) framework and implemented stricter trading restrictions, such as a 2 per cent price-band and 100 per cent margin requirement, to control its volatility.
Similar instances
Similarly, another company that caught BSE’s attention was A-1, earlier A-1 Acit. From around ₹61 in November 2020, the stock hit a high of ₹1,916.15.
In a clarification to the stock exchanges, the company confirmed that its board mulls bonus, stock split, besides picking up 51 per cent stake in a company that is engaged in the electric vehicle (EV) business (Hurry E-bikes). Promoters hold 70 per cent stake in the company currently and 1,852 retail investors hold 8.37 per cent stake. According to BSE filings, for FY25, the company posted a profit of ₹3.65 crore on revenues of ₹331.5 crore. Last week, Mauritius-based Minerva Ventures Fund acquired 66,500 equity shares of A-1 at ₹1,655 a share for ₹11 crore.
Similarly, Swan Defence and Heavy Industries share prices, too, shot up from a mere ₹37.80 to ₹986.75.
Investors, beware
It’s not new that the share price of a company rises defying its fundamentals irrespective of whether it is a bull, bear or sideways market. For example, Shonkh Technologies used to hit the upper circuit daily in its heydays continuously in 2006-08, and is not available for trading now.
Whenever a perceived sunrise sector emerges, there has always been a tendency for some companies to change their names to align with the concept to capitalise on the momentum, to target gullible investors. SEBI and exchanges have been toiling hard to spread awareness about such stocks to investors, including regulatory actions such as bringing them under ASM (Additional Surveillance Measure), GSM (Graded Surveillance Measure), ESM trade for trade, restricted trade, extra margins etc. However, the primary responsibility rests with investors to check the fundamentals before investing.
Exchanges also, on their part, should constantly monitor the price movement and must flag it much earlier instead of alerting it after the stock zooms to astronomical heights.
Published on November 14, 2025
