Economics · SEBI Regulations & IPO
Under the SEBI (Issue of Capital and Disclosure Requirements) Regulations, when a company issues shares through the book building route, what is the mandatory minimum allocation required for Retail Individual Investors (RIIs) in a standard public issue, and what is the maximum permissible size of a Green Shoe Option for post-listing price stabilization?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Retail allocation must be exactly 50% of the public issue, and the Green Shoe Option applies only to further public offers (FPOs).
- 2Retail allocation is capped at 25% for all public issues, and the Green Shoe Option is strictly 5% of the total shares.
- 3Retail allocation must be at least 10% if the company is profitable, and the Green Shoe Option can be up to 25% of the issue size.
- 4Retail allocation must be at least 35% of the net offer, and the Green Shoe Option cannot exceed 15% of the total issue size.✓
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Retail allocation must be at least 35% of the net offer, and the Green Shoe Option cannot exceed 15% of the total issue size.
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