only if we have some genuine information about the issue, we should put our views. unnecessary things result not only in wastage of one's and others time, it creates unnecessary doubts and confusion to others. if one is sincere enough he should come forward to tell what has he done with regard to the issue? here I say negative things and on the back of this, I have put lot of applications, then I am trying to cheat others. nobody should believe the views given in such blogs and apply their own mind while taking any investment decision.
Price Stabilization This is how a greenshoe option works:
* The underwriter works as a liaison (like a dealer), finding buyers for the shares that their client is offering. * A price for the shares is determined by the sellers (company owners and directors) and the buyers (underwriters and clients). * When the price is determined, the shares are ready to publicly trade. The underwriter has to ensure that these shares do not trade below the offering price. * If the underwriter finds there is a possibility of the shares trading below the offering price, they can exercise the greenshoe option.
In order to keep the price under control, the underwriter oversells or shorts up to 15% more shares than initially offered by the company. (For more on the role of an underwriter in securities valuation, read Brokerage Functions: Underwriting And Agency Roles.)
rakesh jhunwala your introductions plz? but i tell u here he and all nothing know about green shoe options. i tell u what the mean of green shoe options- green shoe options not the gurantee that ipo will not go below issue price, it can go any level ok . and green shoe means promotor can issue additional shares 10 to 15 % if ipo highly oversubscribed.
Hello Mr. 227. Rakesh Jhunjhunwala Can you explain how the price of an IPO with Green shoe option cannot fall below the offer price? In 2007 Cairn India IPO also came with Green shoe option, but what happened ever one konws. The offer price of cairn india was Rs. 160 and the first day closing was at Rs. 140. And in few days it dropped to Rs. 120. Therefore donot spread incorrect information on this board.
Hi to all, Don't expect listing gain. It will list below offer price. I am asking u why it will list above offer price.This is very expensive IPO
224. SONMAYA| Link| Bookmark|
October 19, 2009 4:22:25 PM
IPO Guru (1300+ Posts, 500+ Likes)
DEAR sunit shethia,if u have any information regarding gmp of indiabulls kingdly let me know on this board,as we have to take decision of cheque to be returning...(by tuesday)
Good response from QIB side but not so good response from retail and HNI side. Listing will be Rs.3-4 above the issue price. One should book profit there. But if one is looking for 2-3 yrs. then can hold.