Five-Star Business Finance Limited has informed the Exchange about Forfeiture of upfront consideration and lapse of Share Warrants
FIVESTAR · price
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Five-Star Business Finance has announced the lapse of 1,00,000 fully convertible share warrants allotted to Mr. Rangarajan Krishnan on a preferential basis in October 2024. The warrant holder was required to pay the balance 75% of the Rs. 770 issue price (totalling Rs. 77 crore for the full exercise) by April 23, 2026 to convert the warrants into equity shares. Since the holder failed to do so within the stipulated 18-month period, all 1,00,000 warrants have lapsed and stand cancelled. The company has forfeited the upfront consideration of Rs. 1,92,50,000 (25% of the issue price, approximately Rs. 19.25 lakh), which was non-refundable. There is no change in the company's paid-up equity share capital as a result.
The forfeiture is a non-event for shareholders as the warrants lapsed rather than being converted. The company retains the Rs. 1.92 crore forfeited amount as other income, and no dilution will occur from these warrants.