Govind Ltd. proposes to issue 20 lakh share warrants to its promotors. The share warrant gives an option to buy shares at a predetermined price. The price trend of the Company's share in the stock market is given below :

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 per cent 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 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. Hence, the promoters are liable to pay at least 25% of the share warrant i.e ₹ 70 per share warrant. This amount should be paid on the date of the allotment of share warrant by the promoters. Amount to be payable by the promoters at the time of allotment of the warrants = 20,00,000 shares x ₹70 = ₹14 crore.