Kriti Industries (India) Limited has informed the Exchange regarding 'Submission of Intimation under Regulation 30 read with Schedule III Part A of the SEBI (LODR) Regulation, 2015-Lapse and Cancellation of Warrants and Forfeiture of Upfront Amount'.
KRITI · price
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Awaiting price reaction for this filing.
Kriti Industries has informed the exchange that warrants issued earlier have lapsed and stand cancelled, as the holders failed to exercise them within the stipulated time. As a consequence, the upfront amount paid by warrant holders at the time of allotment has been forfeited by the company. This effectively closes the warrant instrument without any conversion into equity shares. The forfeited amount will be accounted for as income by the company in line with applicable accounting standards.
Shareholders need not worry about further equity dilution from these warrants, and the company benefits by retaining the forfeited upfront amount as income. However, it also indicates that the warrant holders previously backing the issue did not see enough value to convert, which is a mildly negative signal on earlier investor confidence.