ABC Company Ltd. had issued 2000 equity shares of ₹80 each with attachable warrant on 20th June, 2018. The warrant can be exchanged in equity in the proportion of 1:1. S, a shareholder who was allotted 200 equity shares

An issuer shall be eligible to issue warrant in an initial public offer subject to the following: the tenure of such warrants shall not exceed eighteen months from the date of their allotment in the initial public offer, a specified security may have one or more warrants attached to it, the price or formula for determination of exercise price of the warrants shall be determined upfront and disclosed in the offer document and at least 25% of the consideration amount based on the exercise price shall also be received upfront; However, in case the exercise price of warrants is based on a formula, 25% consideration amount based on the cap price of the price band determined for the linked equity shares or convertible securities shall be received upfront.