What is the truth behind this impossible rise of RRP Semiconductor’s stock from ₹15 to ₹10,887? – ..

News India Live, Digital Desk: There are often ups and downs in the stock market, but have you ever heard that a stock jumped from ₹ 15 to ₹ 10,887 in just a short time? This may sound like a miracle or a technical glitch, but RRP Semiconductor Limited Something similar has been seen in the shares. This extraordinary growth has not only surprised investors, but has also brought the company on the radar of market regulator SEBI. Let us know the real mathematics behind this ‘rocket’ like rise and is it safe for investment?

Traveling from ₹15 to ₹10,000+: Reality or Illusion?

If we look at the chart of RRP Semiconductor, it can confuse anyone. The company’s share, which was once in the category of penny stock, is today trading at a price of thousands of rupees. Market experts believe that ‘corporate actions’ such as stock split, bonus issue or re-listing process could be a major reason behind such a huge jump. However, such large rallies without any solid fundamental change often also give rise to fears of a ‘pump and dump’, where prices are artificially inflated to trap small investors.

Company on SEBI’s strictness and radar

To maintain market purity, SEBI keeps a close watch on such suspicious activities. SEBI has also taken cognizance of the case of RRP Semiconductor. The regulator is investigating whether any group or promoter deliberately tampered with the trading volumes to manipulate the prices of this share. SEBI has advised investors to check the financial documents, balance sheet and profits of the company before investing money in such ‘multibagger’ looking stocks. Sometimes, in stocks with low liquidity, prices go up rapidly even on low volumes.

What is the lesson for investors?

Semiconductor sector is currently one of the priorities of the Government of India, taking advantage of which many small companies are trying to attract investors. This rise in the stock of RRP Semiconductor has shown people the dream of becoming rich overnight, but the level of risk in it is also equally high. Experts say that if a stock is trading much above its actual value, there is always a possibility of a sudden big fall in it. At present, ‘surveillance’ has increased on this stock and investors should take the help of a financial advisor before taking any decision.