Five-Star Business Finance Limited has announced the cancellation and lapse of 1,00,000 share warrants originally allotted to Mr. Rangarajan Krishnan. The warrants, which had a tenure ending on April 23, 2026, were not exercised for conversion into equity shares within the stipulated timeframe. As a consequence, the company has officially forfeited the upfront consideration of Rs. 1,92,50,000 previously paid by the warrant holder.
Warrant Cancellation Details
Five-Star Business Finance Limited confirmed the lapse of 1,00,000 fully convertible warrants on April 24, 2026. These instruments were initially allotted on a preferential basis at a price of Rs. 770 per warrant, with an original allotment date of October 24, 2024. The warrant holder was granted an 18-month period to apply for equity shares, which concluded on April 23, 2026.
Financial Impact
Following the expiration of the conversion window, the warrant holder failed to remit the required balance consideration for the shares. Consequently, the company has invoked its right to forfeit the upfront payment made by the investor. A total sum of Rs. 1,92,50,000, representing 25% of the total issue price, has been successfully forfeited by the organization.
Impact on Capital Structure
The company has clarified that the lapse of these warrants has no impact on its existing paid-up equity share capital. Because the conversion option was not exercised and the warrants were subsequently cancelled, there is no dilution to the company’s current shareholding structure.
Source: BSE
