Green shoe price stabilisation permits controlled over-allotment, market purchases, shortfall allotment, and lender settlement after an initial public offer. Green shoe option arrangements may stabilise the post-listing price of specified securities in an initial public offer, subject to disclosures, ... Summary
Green shoe price stabilisation permits controlled over-allotment, market purchases, shortfall allotment, and lender settlement after an initial public offer.
Green shoe option arrangements may stabilise the post-listing price of specified securities in an initial public offer, subject to disclosures, appointment of a registered stabilising agent, and limits on securities borrowed from pre-issue shareholders. Separate accounts must be maintained for over-allotment proceeds and market purchases. Market-purchased securities must be returned to lending shareholders, while shortfalls require further allotment at issue price, listing applications, and closure of the demat account.
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