instruments · intermediate
Warrants
Warrants give holders the right to subscribe to equity shares at a predetermined price within a set period.
In India, convertible warrants are often issued in preferential allotments with part payment upfront.
Balance subscription money is paid when warrants are exercised into shares.
If warrants lapse unexercised, the company typically forfeits the amount already paid under the issue terms.
Warrant conversions increase share capital when exercised.
Part of the Market Pulse Term of the Day series — factual market vocabulary, not investment advice.