Cupid Ltd

- Cupid Limited is raising approximately Rs. 385 crores through issuance of non-convertible warrants primarily to FIIs (financial investors), resulting in around 15% equity dilution by adding about 22 lakh shares. - The fundraise is targeted mainly for strategic acquisitions outside India in the condom and IVD segments, as well as a small portion allocated for working capital. - The funds from the preferential issuance are expected to be received within 18 months. - No specific plan for additional debt fundraising was mentioned. - The company has sufficient funds in the balance sheet for ongoing expansion, including land acquisition and capacity increase. - No plan to raise funds through promoter dilution or to provide board seats to new investors, as none will hold more than 5%.

- Cupid Limited has acquired a land parcel and plans to commence new production lines within approximately two years as part of their expansion. - They are increasing male condom manufacturing capacity, aiming to add about 300 million units by the end of 2024, raising total capacity from 480 million units. - A significant portion of the recently raised Rs. 385-400 crore through share issuance is earmarked for strategic acquisitions, particularly outside India, targeting condom and IVD (In Vitro Diagnostics) businesses. - The company is focused on acquisitions that will expand product lines within the condom segment and potentially accelerate approvals for IVD products. - Apart from acquisitions, a small portion of funds will be used for working capital needs. - There are plans to bundle new products like deodorant sprays with existing offerings to enhance the product portfolio. - Overall, capital investments include capacity expansion at existing facilities and strategic acquisitions aimed at growth in domestic and international markets.

- Post expansion, expected revenue to rise close to Rs. 400 crores (vs. earlier Rs. 320 crores). - EBITDA anticipated to exceed Rs. 100 crores after expansion completion. - Capacity to increase by 300 million male condoms by end of 2024, adding to existing 480 million capacity. - Female condom sales expected to significantly rise in Q4 FY24, contributing Rs. 21 crores. - Target to double sales from Rs. 160 crores in FY23 over next 3-4 years, factoring in acquisition and expansion. - Expansion supported by acquisition plans both in India and internationally to broaden product portfolio (condoms and IVD kits). - Retail presence growing; currently in ~1,000 outlets with focus on Northern India as test market; gradual scale-up planned. - Operating margins aimed to improve, EBITDA margins targeted above 35%, PAT margins over 25% as sales grow.

- Revenue is expected to expand from around Rs. 320 crores to close to Rs. 400 crores after completing the expansion plan. - EBITDA is expected to increase to upwards of Rs. 100 crores. - EBITDA margins for the current quarter are around 31.5%, with a target to keep it above 35%. - PAT margins currently in low 20s, aiming to increase over 25%. - Capacity expansion to add 3-4 new dipping lines by end of 2024, adding ~300 million units capacity. - Female condom sales expected to significantly boost topline, projected Rs. 50-55 crores in Q4 FY24. - Inventory days targeted to improve by 20%, reducing cash conversion cycle and enhancing ROCE. - Strategic acquisitions (domestic and international) planned to diversify product lines, especially adding polyisoprene and polyurethane condoms. - Overall optimistic about scaling operations and increasing profitability through expansion and acquisitions.

- Current order book: Rs. 80 crores - Split: Rs. 50 crores male condoms, Rs. 30 crores female condoms - Domestic vs International split: Roughly 10-15% domestic, 85-90% international - Expected orders in Q4 FY24 (Jan-Mar): - South Africa: Both male and female condoms, approx. Rs. 50 crores (3rd year of 3-year contract) - Brazil: Female condoms, expected tender and order ~Rs. 23 crores - Government of India: Male condoms, recently announced Rs. 15 crores order and another ~Rs. 10 crores expected soon - UNFPA (regular): Approx. Rs. 30 crores, mostly male condoms - Backlog related to female condoms in Q4 to be cleared: Rs. 21 crores - Revenue projection post-expansion: Close to Rs. 400 crores top line with EBITDA upwards of Rs. 100 crores.