BusinessJuly 18, 2026
greenshoe
GREEN-shoo
Definition
An option clause in an underwriting agreement that allows the underwriter to sell more shares than originally planned if there is high demand.
Etymology
Named after the 'Green Shoe Manufacturing Company,' the first firm to allow such an option in a 1960 initial public offering. The practice became standard in financial markets, adopting the name of the company that pioneered it.
In the news
The term is used here to indicate that the company's potential fundraising might include an option to sell additional securities beyond the initial target. This allows for flexibility if investor interest in the new shares exceeds expectations.
Inox Green Energy board to mull fundraising on 22 July
Read the full article ↗Business Standard