abhishreshthaa
Abhijeet S
GREEN SHOE OPTION
- Green shoe option means an option of allocating shares in excess of the shares included in the public issue and operating a post-listing price stabilizing mechanism, which is granted to a company to be exercised through a stabilizing agent.
- The green shoe option is available only in case of IPO and not for subsequent issues.
- Maximum number of shares that may be borrowed from the promoters, shall not be in excess of 15% of the total issue size.
- The stabilizing mechanism shall not exceed 30 days from the date when trading permission was given by the exchange.