Very context dependent…
Warrants often are called insider trading to perfection. As promoters get a leeway to convert in 18months.
I remember Apl promoters issued warrants at 3k crore mcap. Rest is history. Same story with the likes of Rk forge and others at the cusp of an upcycle.
On the other hand, if the business isn’t doing well. Then warrants issuance won’t count or matter. At the end of the day, business performance counts.
Just over the years my observation has been, that warrants issued by cyclical companies is a big signal. As promoters lock in the price much earlier and the eventual business performance catches up. Leading to share price outperformance.
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