Interim Order in the matter of RRP Semiconductor Limited

What is this order about?

SEBI issued an interim order examining alleged violations related to the dramatic price surge of RRP Semiconductor Limited (formerly G D Trading and Agencies Ltd.) from ₹15 to ₹10,887.10 over 19 months, focusing on preferential share allotments and connections among allottees.

Who it concerns

RRP Semiconductor Limited, Ramesh Mishra, Ira Mishra, Multiplier Share & Stock Advisors Pvt. Ltd., Chetan Rasiklal Shah, Pace Stock Broking Services Pvt. Ltd., Atul Goel, Nikhil Gupta, Neo Apex Venture LLP, Bhavin Y Mehta, Sumita Mishra, Rajendra Kamalakant Chodankar, Vivek Gaur, Prachi Jain, Jyoti Poddar, Pooja Rohtagi, Ankur Bansal, Sachin Shetty, Leena Shetty, Tinu Sharma, Chirag Sachapara, Rajesh Tripathi, Atul B Chauhan, Savir Power & Automation Pvt. Ltd., Bhaven Vasanji Gala, Satyajit Mishra, Rahul Sikaria, Avani Keniya, Sachapara Krupali Gaurav, Nitin Kasliwal, Rizwana Abdul Razak Nagarkar, Jyoti Ranjan Pradhan, Manish Kumar, Sarika Shet, Ashish Kumar Sharma, Mahadev Karbhari Bangar, Gurudatta Bhat, Trilochan Sharma, Somisetty Malathi Latha, Manoj Gupta

What was found or directed

• Preferential allotment of 1,35,25,000 shares to 31 entities at ₹12 per share (total ₹16.23 crore)
• Shareholding pattern changed from 74.5% promoter to 1.28% promoter post allotment
• Connections between allottees via calls and fund transfers
• Mr. Rajendra Chodankar transferred funds to allottees for preferential allotment
• SEBI ordered forensic audit
• SEBI directed interim restraint on entities

Points worth noting

• Price surged 725 times from ₹15 to ₹10,887.10 in 19 months
• 74.5% of shares allotted to Mr. Rajendra Chodankar (74.5% of expanded share capital)
• Multiple allottees connected via calls and fund transfers
• SEBI ordered forensic audit of transactions