The Green SHOE Option (GSO) in a public offer is used by companies to provide stability to price of the share in the secondary MARKET IMMEDIATELY on listing. A company, which opts for Green Shoe option can allot additional shares not exceeding 15% of the issue SIZE, to the general public who have subscribed in the issue. The proceeds from this additional allotment will be kept in a separate bank account and used to buy shares in the secondary markets once the shares are listed, in case the price falls below the issue price. This is expected to provide support to the price of the shares. This price stabilization activity will be done by an entity appointed for this purpose.

The Green Shoe Option (GSO) in a public offer is used by companies to provide stability to price of the share in the secondary market immediately on listing. A company, which opts for Green Shoe option can allot additional shares not exceeding 15% of the issue size, to the general public who have subscribed in the issue. The proceeds from this additional allotment will be kept in a separate bank account and used to buy shares in the secondary markets once the shares are listed, in case the price falls below the issue price. This is expected to provide support to the price of the shares. This price stabilization activity will be done by an entity appointed for this purpose.