Orbit IPO comes with a warrant - <b>Video</b>

CLICK HERE FOR VIDEO

The initial public offering (IPO) of real estate developer Orbit Coporation has one difference - the offer comes with a detachable warrant per share.

The company is planning to convert each warrant into an equity share w.e.f the 18 month and till the 30th month. If the market price goes below issue price, shareholders can excercise their warrants at a 30% discount to the prevailing market price. If the market price is at or above the issue pric, warrants can be encashed at a 10% discount to the market price.

The company is planning to issue 91 lakh shares of Rs 10 each in a price band of Rs 108-117 per share, and the offer will open on March 20.