Motisons Jewellers reports lapse of 82.70 lakh Warrants worth ₹140.59 crore

Motisons Jewellers Limited announced the lapse of 82.70 lakh warrants on April 05, 2026, after warrant holders failed to exercise conversion rights within 18 months. Originally allotted on October 05, 2024, at ₹170 per warrant to three non-promoter entities, only 17.30 lakh warrants were converted; 82.70 lakh warrants expired. The company will forfeit amounts received against lapsed warrants; North Star Opportunities Fund is forfeiting 35.00 lakh warrants. 

The lapse affected three major institutional investors, each with a varying conversion rate. North Star Opportunities Fund VCC-Bull Value Incorporated VCC Sub-Fund failed to convert any of its 35.00 lakh warrants, resulting in complete forfeiture. Eminence Global Fund PCC-Eubilia Capital Partners Fund I converted 7.90 lakh warrants but allowed 27.10 lakh warrants to lapse. Nexpact Limited showed the highest conversion rate, converting 9.40 lakh warrants while letting 20.60 lakh warrants expire.

A significant development occurred during the warrant period when the company implemented a stock split effective November 08, 2024. The face value of equity shares was reduced from ₹10 to ₹1, resulting in a 1:10 split ratio. This change modified the conversion terms, allowing each warrant to be converted into 10 equity shares of ₹1 face value instead of one share of ₹10 face value.

The warrant lapse follows Regulation 169(3) of Chapter V of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, which mandates the 18-month conversion period. The company will forfeit the amounts received against the lapsed warrants, representing a significant financial benefit. The forfeited amount from the 82.70 lakh lapsed warrants, calculated at the subscription price of ₹42.50 per warrant, totals approximately ₹35.15 crore.