Cupid’s shares also came under pressure. The stock slipped 7.69% to Rs 372.30 as markets assessed the impact of the transaction.

In an exchange filing, Baazar Style Retail said its board approved the fundraise at a meeting held on 20 January 2026. The company plans to issue 1.01 crore fully convertible equity warrants. The issue price has been fixed at Rs 328.25 per warrant. The total size of the preferential issue is Rs 331.53 crore.

Each warrant will be convertible into one equity share with a face value of Rs 5. The conversion can be done in one or more tranches. The exercise window is 18 months from the date of allotment.

The transaction is subject to shareholder approval and other regulatory clearances. While the fundraise will add to the company’s capital base, the sharp fall in the stock reflects near-term concerns around dilution.

Baazar Style Retail is a value fashion and lifestyle retailer with a strong footprint in eastern India. The company has a dominant presence in Odisha and West Bengal and operates 214 stores. It is expanding rapidly through a focused cluster-based strategy, targeting Tier 2 and Tier 3 cities to take affordable, quality fashion deeper into emerging India.

On a consolidated basis, Baazar Style Retail reported net profit of Rs 51.49 crore in Q2 September 2025 as against net loss of Rs 8.94 crore in Q2 September 2024. Net sales rose 70.99% YoY to Rs 531.69 crore in Q2 September 2025.

Cupid is an Indian manufacturer of condoms, personal lubricants, IVD kits and a range of FMCG and personal care products. The company has recently expanded its portfolio to include fragrances, personal hygiene products and wellness items as part of its growth strategy. The company has a strong international presence, exporting to more than 110 countries, and is the first globally to receive WHO and UNFPA pre-qualification for both male and female condoms.

Cupid's board will meet on 29 January 2026, to consider a bonus issue along with the company’s financial results for the third quarter.

The company had reported a sharp improvement in performance in Q2 FY26, with consolidated net profit rising 140.47% YoY to Rs 24.12 crore from Rs 10.03 crore in Q2 FY25. Revenue from operations more than doubled, climbing 103.22% YoY to Rs 84.44 crore for the quarter ended September 30, 2025.