4:1 Bonus Allotment: How Your 1 CUPID Stock Became 80 Shares In 2 Years; Buy Condom Maker Shares?

Condom-making company, CUPID, share price turned ex-bonus on March 9th. The mid-cap stock, which traded around Rs 400 last week, has dropped by nearly 77% to hold a little over Rs 92 on the NSE. Investors need not be worried about this fall as the stock is adjusting to the bonus issue ratio. But did you know CUPID has turned 1 stock into 80 shares for its investors in the span of two years thanks to two bonuses and 1 stock split?

Cupid Ltd Share Price:

Despite turning ex-bonus, CUPID stock ended at Rs 92.20 apiece on NSE, up by nearly 15%. The company's market cap is around Rs 12,397.77 crore. Adjusted to the bonus ratio, now CUPID's 52-week high and low are at Rs 105.39 apiece and Rs 11.15 apiece respectively.

CUPID Ltd 4:1 Bonus Issue:

The 4:1 bonus is the latest by the company. On March 9th, CUPID turned ex-bonus for the same. The ratio implies that 4 new shares will be awarded to eligible shareholders who hold the stock as of Monday.

CUPID Bonus Shares Allotment:

As per the regulatory filing, CUPID has deemed date of allotment to be next working day i.e. Tuesday, March 10, 2026, for allotment of 1 07,57,28,560 fully paid-up Bonus Equity Shares of Re. 1/- each, for 4:1 bonus ratio.

How CUPID Turned 1 Share Into 80 Shares?

Prior to 4:1 bonus issue, CUPID rewarded 1:1 bonus shares with ex-date on April 4, 2024. This was also the time when CUPID turned ex-split for 1:10 ratio, where its face value was trimmed from Rs 10 each to Re 1 each.

In the two years of time, CUPID holds steady record of bonus shares and splits. So let's calculate.

1:10 Stock Split: Assuming that you held CUPID shares on the record date of April 4, 2024, this makes you eligible for the split ration. So your 1 stock will be sub-divided into ten shares (1 x 10/1) with smaller price value.

1:1 Bonus Issue: After adjusting to stock split ratio, your ten shares will become 20 shares due to receiving 1 free share on every existing 1 share. A 1:1 bonus ratio doubles the number of shares you hold in your portfolio.

4:1 Bonus Issue: Then assuming you held these 20 shares as of March 9, 2026, as well. This takes your 20 shares to become 80 shares as you receive 4 new shares on existing 1. The calculation is 20x4/1.

What Happens When A Stock Splits?

Under stock split, already owned shares split into smaller shares, which is mostly carried by listed companies, to improve their liquidity and making their shares cheaper for new and existing investors. But in a stock split, the face value reduces to match the ratio, but there is no impact on share capital reserves.

So let's say, your 1 CUPID stock traded at Rs 300 on April 4, 2024. After 1:10 split, that same 1 stock will become 10 shares at Rs 30 per share due to reduction in face value. But the reserves value remains the same.

1 shares of Rs 300: Rs 300 investment

10 shares of Rs 30: Rs 300 unchanged.

But the future values of the stock price change depending upon market risks and conditions.

What Happens When A Stock Issues Bonus?

In case of bonus issue, a listed company offers free additional shares to the existing share based upon the number of shares owned. This is done to distribute gains of accumulated earnings without paying cash to the investors. In simple words, bonus shares are free of cost. So here the face value does not change, but the reserves and surplus of the company gets reduced. Bonus issue creates implicit value per equity share.

So taking the same example: Assuming you have 1 CUPID stock at Rs 300. Assuming no market reduction on the bonus record date, the 1:1 bonus ratio will multiply your number of shares to 2 smaller shares but will reduce the reserves value to Rs 150, halving the share price.

Again, 1 share of Rs 300: Rs 300
2 share of Rs 150: Rs 300.

Should You BUY CUPID Stock?

As per MarketsMojo report, from a technical standpoint, Cupid Ltd is trading below its key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This positioning typically indicates a bearish trend or downward momentum in the stock's price. The wide intraday range of ₹11 further emphasises the heightened volatility and uncertainty among market participants.

Furthermore, MarketsMojo said, "While the stock has experienced a sharp correction, the elevated participation and liquidity levels underscore its continued relevance within the FMCG small-cap universe. Observers and market participants will be closely watching subsequent sessions for confirmation of accumulation or further distribution trends, which will provide clearer insights into the stock's trajectory amid evolving sector and market conditions."

About CUPID Ltd:

CUPID is a leading manufacturer & supplier of quality Male condoms, Female Condoms, Water based Lubricant Jelly & IVD Kits. Its modern facility has a current capacity of over 480 million pieces for Male Condoms , 52 million pieces of the Female Condoms & 210 million sachets of Lubricant Jelly per annum. Its manufacturing facility is located at Sinnar near Nashik, about 200 Km. East of Mumbai.

Disclaimer: The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of Goodreturns.in or Greynium Information Technologies Private Limited (together referred as "we"). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.