I have been reading about goodluck india and the impact of warrants.
As per investopedia - Warrants represents rights to purchase a company stock at a specific price and at a specific date.
Here in this case goodluck promoters are also getting warrants at 600(near cmp).
I have heard that when a company issues warrant to promoters, then it is a positive sign.
I have few doubts here -
It feels that this settlement is very promoter friendly as when the price increases they get the profit ortherwise they don’t need to excercise it. Considering my understanding is correct, what is stopping the promoter to get warrants every year regularly(and exercise it based on profit) instead of only when business will do good in near future? It seems there is no negatives.
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