Despite a general downturn in global stock markets on Monday, the stock price of Indian condom manufacturer Cupid Limited rose against the trend, closing at ₹90.35, up 12.32% from the previous trading day's close of ₹80.44. The intraday high reached ₹92.90, although this still represents a 77.78% decline from the peak of the past five trading days, indicating a significant short-term rebound.
The overall market is experiencing a correction, influenced by rising oil prices due to the situation in the Middle East. As the world's third-largest oil consumer, India's economic outlook is clouded, with both the Nifty 50 and Sensex indices suffering substantial declines. However, the unusual movement in Cupid's stock price is not due to improved performance, but rather investors' high expectations for the upcoming stock dividend plan.
The company announced a 4:1 stock dividend, meaning shareholders will receive four additional shares for every one share they hold. The record date for this dividend is set for March 9, and registered shareholders will be entitled to this benefit.
Cupid's Chairman and Managing Director, Aditya Kumar Halwasiya, stated that this stock dividend is not only a reward for shareholders' long-term support but also reflects the company's responsibility and commitment to future development. In the current market sentiment, this move has injected confidence into investors and has become a key driver for the short-term strength of the stock price.