According to reports from The Economic Times, Cupid shares experienced a 6% decline on Wednesday following a sharp rally that had driven the stock 15% higher over the past two sessions. The small-cap stock turned ex-record date for its 4:1 bonus issue on Monday, after which the company announced completion of allotment of nearly 108 crore bonus shares to eligible shareholders on Tuesday. The decline reflects investor profit booking at elevated levels after the recent rally.
As reported by The Economic Times, the company's board of directors had approved the 4:1 bonus share issue in January, setting March 9 as the record date to determine shareholder eligibility. The bonus issue came after comprehensive evaluation of the company's capital structure, growth trajectory, and shareholder base composition. The company stated the move is designed to achieve multiple strategic objectives aligned with its capital allocation framework. The bonus issue is expected to improve stock affordability by proportionately reducing the per-share price, making Cupid's equity more accessible to retail investors.
According to The Economic Times, shares of the condom-maker appeared to have crashed nearly 80% in a single day on Monday after adjusting for the bonus issue. The company's current market capitalisation stands at ₹11,759 crore. Despite the recent decline, the stock had seen a massive rally in 2025, surging about 550%, though it has don roughly 17% on a year-to-date basis in 2026. The sharp adjustment reflects the dilution effect of the bonus issue on existing shareholders.
As reported by The Economic Times, Cupid manufactures and supplies male and female condoms, water-based lubricant jelly and IVD kits, with a production capacity of over 480 million male condoms, 52 million female condoms and 210 million sachets of lubricant jelly annually. The company operates a manufacturing facility in Sinnar near Nashik and claims to be the first company in the world to receive prequalification from the World Health Organization and United Nations Population Fund for supply of both male and female condoms.
According to The Economic Times, in January, Cupid reported strong Q3 FY26 earnings with net profit soaring 196% year-on-year and 36% sequentially to ₹33 crore, while total income surged 106% YoY. The company had announced these strong earnings for the October-December quarter of the ongoing financial year 2026. The bonus issue is seen as a sign of strong financial health and growth prospects, with bonus issues often distributed from company reserves and viewed positively by investors.
