Shares of Cupid Limited adjusted for a bonus issue on Monday and appeared to have crashed nearly 80% in a single day. In reality, the stock rose more than 15%, even as the broader stock market declined.

After closing at Rs 402.20 apiece on Friday, the condom-maker’s shares opened at Rs 82 on Monday after turning ex-record date for the bonus issue. The stock later rallied more than 15% to Rs 92.90.

Earlier in January, 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.

What does this mean for shareholders?

If a shareholder owns one share of a company worth Rs 100, a 4:1 bonus issue will convert the holding into five shares worth about Rs 20 each. The total value of the holding remains unchanged at Rs 100.

Once the stock begins trading ex-bonus, the price appears to fall sharply, but this simply reflects the adjustment following the corporate action.

Only shareholders who owned the stock on the record date are eligible to receive the bonus shares. 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 participate in the stock.

Cupid share price

Cupid shares witnessed a massive rally last year, jumping around 550% in 2025. However, the stock has fallen more than 13% so far in 2026.

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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