Posted on:

30 Mar 2024

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Excess Over-allotment?

Doesn't greenshoe option lead to over allotment of Shares?

As during an ipo , the ib overallots the shares upto 15%, but if the share price increases, the ib has the right to excercise its option which the issuing company gives to the ib, doesnt this lead to excess over-allotment of shares in the spot market?

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