RRP Semiconductor, a penny stock, has become the darling of Dalal Street, delivering staggering returns of 70,000 per cent in eighteen months and commanding a market capitalisation of over ₹15,000 crore. But a dive into the RRP group’s physical footprint, corporate and shareholder history hints that this “defense unicorn” may be little more than a complex web of shell companies, phantom factories, and circular trading.
For example, the registered office of its key technology arm, Mass Spec Technology Pvt Ltd, is not a semiconductor lab, but “Style 4 Ever”, a small fashion boutique in Santacruz East selling women’s dresses.
The pattern continues across the group. Racho Precision Engineering, projected as a manufacturing unit, was struck off by the Registrar of Companies in 2024 and is today occupied by unrelated tenants. Brahmastra Defence Techno Products, listed as a Thane-based entity, had no trace at its registered address.
Unusual retail holding
At the centre of this network is Rajendra Kamalakant Chodankar — a retail investor on paper, yet one who controls nearly 73 per cent of the public float. Such concentrated ownership, market participants say, can enable circular trading or price dominance, especially in micro-cap counters with thin liquidity.
Chodankar’s rise coincides with the abrupt transformation of the group’s flagship entity. RRP Defense Ltd was, until June 2025, known as Euro Asia Exports Ltd, which was a dormant textiles company dealing in fabrics. The firm underwent a sudden name and business change, positioning itself as a defence-technology player with high-value ambitions.
Between 2019 and 2022, Chodankar served as a director in Paras Defence entities alongside former Bharat Electronics Ltd (BEL) CMD Sunil Kumar Sharma, who was previously booked by the CBI in connection with alleged irregularities in the IAF’s Integrated Air Command and Control System (IACCS) project.
Transfer of share documents further show that Chodankar acquired his controlling stake in the RRP shell company from Sharma’s legal heirs, deepening concerns about legacy influence and the origins of the group’s “strategic” positioning.
Valuation mismatch
The divergence between the company’s soaring market price and its economic reality is stark. RRP Semiconductor’s shares closed at ₹11,549.95 on Friday, with its market capitalisation rising to approximately ₹15,735.70 crore. This marks a surge of over 10,700 percent from its 52-week low of around ₹106.93, in just a year.
“The graph shows a unidirectional move with the stock always hitting the upper circuit. The sales were nil for seven years and then it came to life,” said a source aware of the matter. “There is pure manipulation and operator driven behaviour. Unsuspecting investors will be optimistic for optimism’s sake,” the source said.
Despite limited operational evidence, RRP Semiconductor has seen frenzied buying on the bourses, driven by Chodankar’s buying, denied market rumours — including claims of a celebrity investment and purported land allotment by the Maharashtra government. The BSE has since placed the stock under Enhanced Surveillance Measures (ESM), flagging concerns related to price volatility and investor protection.
RRP Defense is also hitting upper circuit on every trading day, rising over 4,700 percent to ₹964 from ₹20, after the entry of Rajendra K Chodankar into the entity in January 2025.
While a building was found in Mahape, Thane — housing RRP Semiconductors, RRP S4E Innovations, Rrp Drones Innovations, Rrp Fusion Tech, and RRP electronics — it did not appear fully functional. Further, industry sources said they had not seen products from RRP Drones Innovations at sectoral events or exhibitions.
For now, Chodankar appears on paper as a multi-billionaire, presiding over a group whose registered offices range from vacant premises to a fashion boutique. But with physical infrastructure possibly missing, entities struck off or untraceable, and valuations detached from fundamentals, market participants say the rising risk for investors merits closer regulatory attention.
Emailed queries sent to SEBI and the RRP Group entities did not elicit a response.
Published on November 24, 2025
