Condoms Maker Cupid Share Is On The Roll, Soars By 8% On September 13; What's Driving Bulls Here?

Leading condom maker, Cupid Ltd is accelerating on the back of bulls during Wednesday's trade. The stock has zoomed by more than 8% today and moved closer to its 52-week high. The driving force for bulls in this stock is due to the company being acquired by Universal-Halwasiya Group and Family through Columbia Petro Chem, and Aditya Halwasiya, a promoter of Universal Petro Chemical.

At the time of writing, Cupid's share price traded at Rs 411.75 apiece, up by 5.6% on BSE. The stock even touched an intraday high of Rs 423 earlier in the day -- which was just ten rupees away from its fresh 52-week high of Rs 431 apiece that was struck on September 11.

At the current market price, Cupid's market value is nearly Rs 549 crore.

On September 11, in its regulatory filing, Cupid said that the has been acquired by Universal-Halwasiya Group and Family through Columbia Petro Chem Private Limited and Aditya Halwasiya, a promoter of Universal Petro Chemicals Limited.

For the acquisition, the Universal-Halwasiya Group and Family entered into a definitive Agreement to be bought 41.84% Equity Capital/Voting rights from the promoter/Promoter Group of Cupid Limited, namely Omprakash Garg and Veena Garg and the Management Control of Cupid Limited, subject to regulatory compliances and approval.

As per the filing, the 41.84% stake represented 55,81,036 equity shares at a price of Rs 285 per share -- aggregating to nearly Rs 159.06 crore.

In line with Sebi's guidelines, the Universal-Halwasiya Group and Family has made an open offer to acquire an additional 26% of the outstanding equity shares of Cupid Limited from the public shareholders.

The open offer of an additional 26% stake included the acquisition of 34,67,880 equity shares at a price of Rs 325 per share for a consideration of Rs 112.71 crore.

On the acquisition, Aditya Halwasiya said, "We at the Universal-Halwasiya Group are proud to be able to carry Omprakash Garg Ji's vision forward and help Cupid Limited thrive as it continues on its journey. Garg Ji is a true visionary who has built this fantastic company. I believe that the Indian consumption growth story is playing out before our eyes, and the next decade belongs to BHARAT. Cupid fits in perfectly into this Bharat growth story with its innovative line of products to cater to our relatively young population, which is getting more conscious and vocal about their sexual health, safety, and wellness."

Meanwhile, Omprakash Garg said, " There is the satisfaction of handing on the business that I started and developed over many years of hard work and persistence to businesspeople who will now take it to the next stage of prosperity. Since Cupid Limited will be in the capable hands of the Universal-Halwasiya Group and Family, I am very optimistic about its future."

Universal-Halwasiya Group and Family has appointed Monarch Networth Capital as the Manager of the offer.

Universal-Halwasiya Group and Family recognizes the immense potential in Cupid Limited's assets and workforce. By acquiring a controlling stake, they aim to elevate Cupid to a market-leading position. This strategic move is poised to benefit Cupid Limited's customers, employees, and shareholders alike, fostering a stronger industry presence and enhanced prospects for Cupid's future endeavors, the filing said.

Cupid is one of the leading Manufacturers & Suppliers of Male Condoms, Female Condoms, Lubricant Jelly and In Vitro Diagnostic Test Kits. Year-to-date, Cupid shares have gained by over 54% on BSE.