Cupid Limited Announces 4:1 Bonus Issue: A Major Reward for Shareholders
Cupid Limited has made a significant announcement that has caught investors’ attention across the market. The company’s board approved a generous 4:1 bonus share issue on January 29, 2026, marking a major corporate action for shareholders. This decision means eligible investors will receive four additional shares for every one share they currently hold.
The board meeting was held to discuss quarterly financial results and the bonus proposal. Cupid Limited, established in 1993, is India’s leading manufacturer of male and female condoms, personal lubricants, and In Vitro Diagnostic (IVD) kits. The company operates from its manufacturing facility in Sinnar, near Nashik, Maharashtra, with exports to over 110 countries.
This bonus announcement comes at a time when the company has shown remarkable stock performance, with shares surging over 450% in the past year. The decision reflects management’s confidence in the company’s prospects and commitment to rewarding long-term shareholders.
What is the 4:1 Bonus Issue?
Understanding the Bonus Structure
The 4:1 bonus issue means shareholders will receive four fully paid-up equity shares for every one equity share held as on the record date. This corporate action will increase the total number of shares outstanding without requiring any payment from existing shareholders.
Key Details
- Ratio: 4 fully paid-up shares for every 1 existing share
- Approval Date: January 29, 2026
- Subject to: Shareholder and regulatory approvals
- Record Date: To be announced in due course
Eligibility Requirements
To be eligible for this bonus issue, investors must hold shares of Cupid Limited as on the record date, which the company will announce after receiving necessary approvals. The trading window for designated persons was closed from January 1, 2026, until 48 hours after the financial results.
How Bonus Shares Benefit Investors?
Increased Holdings: If you own 100 shares, you will receive 400 additional shares, taking your total to 500 shares at no extra cost.
Improved Liquidity: More shares in circulation can improve trading liquidity and make the stock more accessible to retail investors.
Tax Efficiency: Bonus shares are generally tax-free at the time of allotment in most jurisdictions.
Signal of Strength: Companies typically issue bonus shares when they have strong reserves and a positive business outlook.
Company Overview and Business Performance
About Cupid Limited
Cupid Limited was incorporated in 1993 as a Public Limited Company and listed on the BSE in 1995 and the NSE subsequently.
Market Performance (as of January 2026)
- Market Capitalization: ₹10,650 crore
- 52-Week High: ₹525.00 (reached January 1, 2026)
- 52-Week Low: ₹55.75
- One-Year Performance: 457% gain
Recent Quarter Performance
- Q2 FY26 net profit jumped 140.34% year-on-year to ₹24.13 crore
- Quarterly growth showed 60.76% jump in net profits compared to the previous quarter
- The company expects Q3 FY26 to be the best-ever quarter performance
FY26 Guidance
- Revenue target: Above ₹335 crore
- Profit target: Above ₹100 crore
Financial Health
- Almost debt-free company, Record-high order book reported in January 2026
Stock Performance Analysis
Cupid Limited shares have delivered extraordinary returns for long-term investors:
Recent Trading Activity
The stock experienced significant volatility in early January 2026:
- Intraday low: ₹419.95 (down 19.99% from previous close)
- 52-week high hit same day: ₹527.40
- This marked the end of a 15-day consecutive gain streak
- Stock underperformed the FMCG sector by 15.8%
Current Trading Levels (Late January 2026)
- Trading range: ₹396-₹468
- Technical analysis shows stock above 50-day, 100-day, and 200-day moving averages
- The 5-day and 20-day moving averages indicate short-term weakness
Shareholding Pattern
Current Ownership Structure (as of September 2025)
- Total promoter stake: 45.55% (increased from 42.52% in December 2024)
- Pledged shares: 20% of promoter holdings (reduced from 36.13% in December 2025)
- Unpledged: 17.09% of shares unpledged in the last quarter
Impact of Bonus Issue on Shareholding
The 4:1 bonus issue will not change the percentage ownership of existing shareholders. However, it will:
- Increase total outstanding shares by 5 times (from 1 share to 5 shares total)
- Proportionately reduce the share price
- Maintain the same market capitalization
- Make shares more affordable for retail investors
Investor Considerations
Positive Factors
Strong Fundamentals
- Almost debt-free balance sheet
- Record-high order book
- Consistent profit growth (140% YoY in Q2 FY26)
- Export-oriented business model with a global footprint
Growth Catalysts
- Saudi Arabia manufacturing facility expansion
- B2C FMCG segment diversification
- Strategic investment in Baazar Style Retail
- WHO/UNFPA prequalification providing competitive edge
Risk Factors to Consider
Recent Volatility
- Stock saw 19.99% intraday fall on January 2, 2026
- Short-term technical indicators are showing weakness
- High valuation metrics (P/E ratio: 260.79, P/B ratio: 31.16)
Operational Concern
- Debtor days increased from 98.2 to 134 days
- Working capital days increased from 137 to 210 days
- Poor sales growth of 2.70% over the past five years
Conclusion
Cupid Limited’s 4:1 bonus issue represents a significant milestone for the company and its shareholders. This corporate action, approved on January 29, 2026, will multiply shareholders’ holdings by five times once the record date is finalized.
The decision reflects management’s confidence in the company’s strong fundamentals, growing order book, and future expansion plans, including the Saudi Arabia facility. While the stock has delivered exceptional returns with 457% gains in the past year, investors should carefully evaluate both the opportunities and risks.
The bonus issue, subject to shareholder and regulatory approvals, aims to improve stock liquidity and make shares more accessible to retail investors.
Frequently Asked Questions (FAQs)
The bonus shares will be credited after the record date announcement and completion of regulatory approvals, typically within 15 days from the record date.
No payment is required. Bonus shares are fully paid-up equity shares issued free of cost to eligible shareholders.
The stock price will adjust proportionately. If trading at ₹500, it may adjust to approximately ₹100 after a 4:1 bonus (5 times dilution).
Cupid is the first Indian company with WHO/UNFPA prequalification for both male and female condoms, exporting to 110+ countries with 90% revenue from exports.
Disclaimer
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
