I am trying to understand what is the worst that can happen here.
Suppose the ban is not revoked by BSE then what happens to our investments?
one option is that CUPID gets itself listed on NSE and we could go there and buy/sell.
How easy will it be for CUPID to get itself listed on NSE when NSE will be fully aware of the suspension order from BSE?
What are the other option that we retail investors have?
1 Like
General information
TitleFemale Condoms
UN organizationUnited Nations Population Fund
ReferenceITB UNFPA/CPH/12/056
Award date13-Mar-2013
Contract value ($)
Description
UNFPA has established non-exclusive Long Term Agreements with Cupid Limited and The Female Health Company for Female Condoms supply.
The Agreements shall be valid for a period of THREE YEARS (with the possibility of extending for one more year effective from commencement date 13/03/2013).
The reference no. of the LTA with Cupid Limited is LTA13/237.
The reference no. of the LTA with The Female Health Company is LTA13/236.
This contract expired on 13-3-2016 , No mention of renewal on UN site.
https://www.ungm.org/Public/ContractAward
The communication from the Company on 11-3-2016
1 Like
It indeed looks very interesting. Going through BSE record it seems that promoters holding in this company was only about 13.58 % in march 2002 BSE shareholding link which increased to about 40 % in march 2005 bse link march 2005 and 48.46 % as per dec 2015 shareholding dec 2015. Also recent annoucement about brother gifting share to brother as gift in bit puzzling (i mean how a brother can gift his share after multifold rise in share price of the company free of cost)insider trading link of bse on 22/03/2016. Also it appears always bulk deals in this counter was heavy (almost 10 pages of bulk deal in last 7 years for small company like cupid) BSE bulk deal page. Also a related news item in ET help throws some light on probalities and timelines of possible relisting, delisting etc. ET article about suspension etc
Disc: No interest
1 Like
Dear Pranav,
rich or poor shareholders don’t need to be compensated if a stock rises or falls due to normal market movements, however when due to regulator’s fault if a stock gets hammered who’s fault is it???
Rule of law, sanctity of ownership and laissez-faire are the bedrock of capitalism .
Whats happening currently is akin to socialism…
2 Likes
I think we should try to judge the situation based on facts and not on hopes.
First, the question raised by @nirajiitkgp needs some thinking. Why was the gifting took place? Why so many bulk deals and now many of these entities have vanished?
Were these entities involved in bulk deal for any other listed companies or just CUPID?? (If its just CUPID then its very strong reason to come to conclusion that it was a plot and companies were used to manipulate price)
Also, the pricing of warrants is very dubious and as our VP member pointed out, this could have been easily purchased through market.
Also, historically we have seen that many companies with good fundamentals and business model have failed to create sustainable shareholder value due to poor corporate governance (who knows??).
And people have ignored these red flags in companies like kaveri, kitex etc. and ultimately the bubble of hope bursts but unfortunately the price keeps falling and results into significant losses to shareholders.
And on the point of shareholder complaints…this is one way but can’t succeed like USA because of the time taken to resolve the cases in Indian courts…and BSE will not stop until it looses in Supreme court (so one has to wait for atleast 15 years…ex. Sahara case still going on and on…Jayalalita case going on since 1992!!). So ultimately its our choice 
Vijay,
In case some share holders of Cupid come together & move court, I do not think it would be either desirable or necessary for share holders with small holdings to contribute financially. Just coming together is enough to give moral support n strength. Finances can be managed. Hopefully, it will not be required.
3 Likes
http://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20160331-36
4 companies got stay from high court against suspension and will resume trading today. Cupid need not resort to this, as it has a strong case to come out of suspension just based on document submission.
3 Likes
Rajeevji thank you for your support
I am ready for working for the right cause.
If the need arises we will do the needful.
1 Like
@Ishank
Thank u Ishank for your alertness and sharing this news promptly .
This is the great news out of 31 companies blocked for trading 4 have got a stay from high court And they will resume trading from today .
Cupid should also have taken stay first and given clarification later .
This already shows that BSE blindly can’t take extreme action and it’s illegal under law.
There has to be procedure followed.
BSE Have to give time to the concerned parties for clarification.
We can easily see what happens to the real operator run stocks on BSE.
No one ask any questions there !!
Why BSE or its official are biased towards some companies .
Ar the interests not fulfilled ??
2 Likes
We have seen a chaos in thread recently. Please keep this forum a civilized place. Any violation will lead to immediate suspension.
4 Likes
So the BSE is a regulator, in this case?
1 Like
At the outset, I clarify that it is not my intention to add salt to the wound. I am doing this becoz one can learn from the mistakes and dont repeat the same. Further , as of now, none of us know whether it is a mistake or not to have made the investment. It is only dubious as of now.
Now , I am giving below the relevant para which the Company has not complied with. Members can further dig on this.
13.3 Non-transferability of financial instruments
13.3.1
(a) The instruments allotted on a preferential basis to the promoter / promoter group as defined in Chapter VI in Clause [6.4.2 (m)] of these guidelines, shall be subject to lock-in of 3 years from the date of their allotment.
(b) In any case, not more than 20% of the total capital of the company, including capital brought in by way of preferential issue, shall be subject to lock-in of three years from the date of allotment.
© In addition to the requirements for lock in of instruments allotted on preferential basis to promoters/ promoter group as per clause 13.3.1 (a) and (b), the instruments allotted on preferential basis to any person including promoters/promoters group shall be locked-in for a period of one year from the date of their allotment except for such allotments on preferential basis which involve swap of equity shares/ securities convertible into equity shares at a later date, for acquisition.
(d) The lock-in on shares acquired by conversion of the convertible instrument/exercise of warrants, shall be reduced to the extent the convertible instrument warrants have already been locked-in.
I am still trying to find out whether the sale by one of the promoters violated this. Members can contribute on this.
13.5 Other Requirements
1.
(a) In case of every issue of shares/warrants/FCDs/PCDs/ or other financial instruments having conversion option, the statutory auditors of the issuer company shall certify that the issue of said instruments is being made in accordance with the requirements contained in these guidelines.
(b) Copies of the auditors certificate shall also be laid before the meeting of the shareholders convened to consider the proposed issue.
© In case of preferential allotment of shares to promoters, their relatives, associates and related entities, for consideration other than cash, valuation of the assets in consideration for which the shares are proposed to be issued shall be done by an independent qualified valuer and t**he valuation report shall be submitted to the exchanges on which shares of the issuer company are listed.**
No intimation to BSE on this.
13.5A The details of all monies utilised out of the preferential issue proceeds shall be disclosed under an appropriate head in the balance sheet of the company indicating the purpose for which such monies have been utilised. The details of unutilised monies shall also be disclosed under a separate head in the balance sheet of the company indicating the form in which such unutilised monies have been invested
I have verified all the Annual Reports starting from 2012 ( BSE only only from 2013 and Company website from 2012). None of the annual reports stated how the monies were utilised.
Please check the facts with other Valuepickr stocks like PIInds,Shilpa, Mayur, Granules, etc . All of them have complied with these requirements.
3 Likes
Not only the regulator, but also a sorcerer. BSE does some voodo to force shareholders to sell at Lower Circuits, taking away their right to ownership and destroying laissez faire.
Did anyone get a chance to speak with the management on any updates from BSE?
Mr. Garg is confident of coming out clean !
1 Like
The Cupid share continues to be suspended from trading, leaving the retail investors jittery about their investment in the Co. This post is an attempt to assuage some of those fears. The Mgt. is fully aware of the turmoil that the investing community is going through. It has submitted all the necessary papers to the BSE. I had called up the exchange & gathered that the papers were in order & the suspension should logically be revoked sooner rather than later in the normal course. I also understand that the Co.'s appeal filed in the Delhi High Court has been admitted & the hearing is due tomorrow (Wed) morning. The Delhi HC had only last week revoked the suspension of 4 other Co.'s that were similarly suspended like Cupid.
This major setback in the long run could be a blessing in disguise for the share holders. I expect the Co. to become even more investor friendly going forward. Going by the performance in the current year, I do see a good possibility of a final dividend being announced in addition to the 2 earlier interim dividends. Markets tend to like this culture of high dividends. I find it only logical that after such a major setback, the Mgt. decides to get pro active in other confidence building measures, as loyal share holders are perhaps the biggest strength for a listed Co. Cupid is a cash rich Co. so there is always a possibility of a share buy back by the Co. going forward. The promoter himself has the wherewithal to step in under creeping acquisition. We will have to wait & see what measures the Co. decides to take.
Revocation of suspension is only a matter of time. Usually it’s always the small investors who throws in the towel & lose out to the big boys. When trading resumes, the Cupid investors would do well to take a considered view of what action they need to take & not act on impulse.
21 Likes
I disagree with you with regard to Non-transferabilty clause. please note that the last preferential issue was done in the year 2012 and 4 years have already gone by and 3 years of lock-in period does not apply here. With regard to 13.5 other requirement, i agree with you that they have may not have disclosed the utilisation of the money received from the allotment of shares. But, BSE could have asked for it anytime they wanted. Does it necessitate to directly suspend trading without giving any valid reasons.
One promoter sold after the announcement of tie-up with Safeware Company. Can you find out the details and post it here. Whether that sale violated we need to find out.
Read my post and for your benefit, I have put the point in bold.
some cost increase. But I expect condom manufacturers to pass it on to their customers. So less possibility of margin impact
2 Likes
FHC merger with Aspen Park Pharma(pending approval from shareholders and other closing conditions)
http://finance.yahoo.com/news/female-health-company-enters-transformational-123000058.html
1 Like