Scribd
Upload
67 views

Issue of Warrants

The document outlines guidelines for listed companies issuing warrants that can be converted to equity shares at a future date. It states that warrants issued in a further public offer must have a tenure of no more than 18 months and at least 25% of the exercise price must be received upfront. It also provides general conditions for further public offers, including that the company must have an agreement with a depository for dematerializing shares, firm arrangements for 75% of stated means of finance for projects to be funded from the issue, and the amount for general corporate purposes cannot exceed 25% of the amount being raised.

Uploaded by

Dhruvi Kothari
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
67 views

Issue of Warrants

The document outlines guidelines for listed companies issuing warrants that can be converted to equity shares at a future date. It states that warrants issued in a further public offer must have a tenure of no more than 18 months and at least 25% of the exercise price must be received upfront. It also provides general conditions for further public offers, including that the company must have an agreement with a depository for dematerializing shares, firm arrangements for 75% of stated means of finance for projects to be funded from the issue, and the amount for general corporate purposes cannot exceed 25% of the amount being raised.

Uploaded by

Dhruvi Kothari
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

As per Issue of Capital and Disclosure Requirements Regulations 2018, a Listed company can issue

warrants to exercise right to convert it into equity shares at a future Date.


Following guidelines are required to be complied with for issue of warrants

111. An issuer shall be eligible to issue warrants in a further public offer subject to the following conditions:
(a) the tenure of such warrants shall not exceed eighteen months from the date of their allotment in the public
issue;
(b) a specified security may have one or more warrants attached to it;
(c) the price or formula for determination of exercise price of the warrants shall be determined upfront and at
least twenty-five per cent. of the consideration amount based on the exercise price shall also be received
upfront;

Provided that in case the exercise price of warrants is based on a formula, twenty-five per cent. consideration
amount based on the cap price of the price band determined for the linked equity shares or convertible securities
shall be received upfront.
(d) in case the warrant holder does not exercise the option to take equity shares against any of the warrants held
by the warrant holder, within three months from the date of payment of consideration, such consideration made
in respect of such warrants shall be forfeited by the issuer.

General conditions for FPO


104. (1) An issuer making a further public offer shall ensure that -
(a) it has made an application to one or more stock exchanges to seek an in-principle approval for listing of its
specified securities on such stock exchanges and has chosen one of them as the designated stock exchange, in
terms of Schedule XIX;
(b) it has entered into an agreement with a depository for dematerialisation of specified securities already issued
and proposed to be issued;
(c) all its existing partly paid-up equity shares have either been fully paid-up or have been forfeited;
(d) it has made firm arrangements of finance through verifiable means towards seventy five per cent. of the
stated means of finance for the specific project proposed to be funded from the issue proceeds, excluding the
amount to be raised through the proposed public issue or through existing identifiable internal accruals.
(2) The amount for general corporate purposes, as mentioned in objects of the issue in the draft offer document
and the offer document, shall not exceed twenty five per cent. of the amount being raised by the issuer.
Explanation: For the purposes of this regulation, “project” means the object for which monies are proposed to
be raised to cover the objects of the issue.

You might also like