What if some company takes it over? Is it possible? If they buy stake from all the financial companies?

Selling 40Lakh shares at 200.5 provides them Rs 80cr . This 80cr will be used to release the pledged shares. This will bring promoter holding to 20% .But all pledged shares would be released.

The reason behind this is : If the assortment of lenders were to sell the pledged shares in the market individually. It would affect investment sentiment further , crash the price and would result in a fire sale. The promoters and shareholders stand to lose more this way .

Selling the shares at this price (rs 200.5) in a block deal, is the only way Bhatias could raise the cash to release their pledged shares . ( considering the fact that Bhatias do not have cash or any other hard assets worth Rs 80cr )

Disclosure : Invested. The above logic is only a educated guess. Only the Company Disclosures tomorrow can clarify this.

Disclosure : Invested.

ravijain88
the cost and selling price of FCHO female condom can be found in the below article and it comes near to 15 -17 Rs and selling price near to 35- 37 Rs.

can u please elaborate how you arrived at the cuipd's cost of female condom at 4 Rs and selling price at 24 Rs as it will give a margin of 500% which is
not realistic and also not reflecting in profit figures.

Requesting other board members to throw some light on the cupids female condoms cost price and selling price .

vijay

After speaking to Mr.Garg I got to know that the product approvals take time and generally range from 2 to 3 years(without accounting for the time taken in product development). The capital required for product development is just 6 cr. So capital is not an issue for a new entrant or an existing business..however, would an existing business with lots of capital want to spend so much time on approvals? Wouldnt they rather acquire a small company like Cupid? Secondly, the market is too small for these big players to even concentrate on right now..by the time they, Cupid may well have established its position in the market.

Secondly you have mentioned cost advantage as a moat..How does Cupid have this advantage..what is the source of this advantage? I recall reading cheap labor as a source..I doubt that since its hard to believe that it is such a labor intensive industry..I saw the annual reports of FCH and compared the gross and operating margins..The gross for Cupid is in early 60s while for FCH its 58..shouldnt rubber be cheaper in Malaysia? FCH didnt give break up of its operating costs so couldn't figure out the expenses on labor..I am struggling to understand the reason for low cost

Still believe, they need to be consumer facing but the management lacks the marketing DNA so licensing it could be an alternative..

Disc:invested

Quite puzzling.

40.0L shares is too high! The promoters had 1.26Cr shares out of which closed to 50% was pledged. Now how can they sell 30% of their holdings? That will bring down their ownership to below 20%