One will have to pay 2165 to HDFC, confirmed it with their secretraial team, refer mail below
Exited the position recently.
One tax related question: would the capital gains be treated as equity capital gains i.e. LTCG after 1 year or Debt instrument types i.e. LTCG only after 3 years?
The Warrant holder is required to pay Rs.2,165 per Warrant for exchange of the same with one equity share of Rs. 2 each of the Corporation.
The Exercise Right by the Warrant holders may be exercised, at any time during normal business hours up to 5.00 p.m. in Mumbai on or after the date of Allotment i.e., August 11, 2020, until August 10, 2023 (i.e., within 36 months from the date of the Allotment, but in no event thereafter) (“Warrant Exercise Period”).
Further, post amalgamation of the Corporation into HDFC Bank, the warrants outstanding shall continue with HDFC Bank till the original exercise date and the warrant holders shall be entitled upon exercise of such warrants with the shares of HDFC Bank (on the basis of share exchange ratio).
As you may be aware, the share exchange ratio for the said amalgamation of the Corporation with and into HDFC Bank shall be 42 equity shares of face value of Re.1 each of HDFC Bank for every 25 fully paid-up equity shares of face value Rs. 2 each of the Corporation.
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