Shares of Cupid dropped around 6% on Wednesday, as the sharp rally seen earlier following its 4:1 bonus issue lost steam, as investors may have resorted to profit booking at elevated levels.

The small-cap stock rallied around 15% over the past two sessions, after turning ex-record date for its 4:1 bonus issue on Monday. On Tuesday, the company announced that it has completed the allotment of nearly 108 crore bonus shares to eligible shareholders. Shares of the condom-maker appeared to have plunged nearly 80% in a single day on Monday after adjusting for the bonus issue.

Shares of the condom-maker had appeared to have crashed nearly 80% in a single day on Monday after adjusting for the bonus issue.

The company’s market capitalisation currently stands at Rs 11,759 crore.

Cupid shares saw a massive rally in 2025, surging about 550%. However, the tide seems to have turned in 2026 with the stock don roughly 17% on a YTD basis.

Cupid’s 4:1 Bonus Issue

Earlier in January this year, Cupid said its board of directors had approved the issue of bonus shares in the ratio of 4:1. The company had set March 9 as the record date to determine the eligibility of shareholders to receive the bonus shares.

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Cupid’s bonus issue came after a comprehensive evaluation of the company’s capital structure, growth trajectory, and shareholder base composition, it said, adding that the move is designed to achieve multiple strategic objectives aligned with the company’s capital allocation framework.

The bonus issue is expected to improve stock affordability by proportionately reducing the per-share price, thereby making Cupid’s equity more accessible to retail investors, the company said in an exchange filing.

Bonus issues consist of free shares distributed by a company from its reserves and are often seen as a sign of strong financial health and growth prospects. While the issue of bonus shares increases the total number of outstanding shares, it does not change the company’s market capitalisation. However, it can improve liquidity and affordability, allowing more investors to add shares of the company to their portfolio.

The company manufactures and supplies male and female condoms, water-based lubricant jelly and IVD kits, and currently has a production capacity of over 480 million male condoms, 52 million female condoms and 210 million sachets of lubricant jelly annually.

The condom-maker operates a manufacturing facility in Sinnar near Nashik, about 200 km from Mumbai. It says it is the first company in the world to receive prequalification from the World Health Organization and United Nations Population Fund for the supply of both male and female condoms.

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Q3 snapshot
Cupid in January had reported a strong set of earnings for the October-December quarter of the ongoing financial year 2026. The company’s net profit soared 196% year-on-year and 36% sequentially to Rs 33 crore in Q3 FY26, while total income surged 106% YoY.

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