Over 39 lakh shares of Cupid had changed hands on the BSE as of 2.45 pm, much higher than the two-week average of 5.03 lakh shares. On NSE, 221.59 shares were traded. There were only sell orders for 58 lakh shares on both exchanges combined.

Cupid shares had opened at ₹526 as against the last closing price of ₹524.90. It soon tumbled to the day's low of ₹419.95 - its 20% lower price band.

There was no apparent fundamental trigger behind the crash in Cupid shares. The last exchange filing shared by the company is on December 29, wherein it announced setting up a new FMCG manufacturing facility in the Kingdom of Saudi Arabia (KSA).

The step marks an important milestone in Cupid's international expansion journey as it is the first manufacturing plant outside India by the company.

The proposed facility is aimed at supporting Cupid's FMCG growth strategy and strengthening its presence in overseas markets, beginning with the Gulf Cooperation Council (GCC) region, the company said in a filing. The plant is expected to enhance regional supply capabilities, improve speed to market, and ensure better product availability across KSA and other GCC countries.

The project is proposed to be funded through the company's internal accruals and will be taken forward after completing detailed evaluations and obtaining necessary regulatory and statutory approvals, according to the filing.

Cupid's multibagger returns

Cuoid is one of the country's leading manufacturers and brands of male and female condoms. It has recently forayed into the FMCG segment, offering products like fragrances, personal care items, and other wellness solutions.

Cupid currently exports its products to over 110 countries, with a substantial portion of its revenue generated from international markets.

Despite today's selloff, Cupid remains a top-performing stock with a 455% return in the last one year. In the past three months alone, the small-cap stock has zoomed 93% while its six-month performance shows a 293% rise.

Mahesh Ojha of KC Securities said that, given a sharp rise in Cupid shares, investors should wait and watch for clarity on the movement and can look at the stock once it's stable.