GREEN SHOE OPTION FOR TCS

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Important Terms in Greenshoe option:

Stabilizing Agent (J M Morgan Stanley)
Greenshoe lender (Tata Sons, Sheba Properties, Kalimati Investment Company, etc.)
Greenshoe transferor (Tata sons)
GSO Bank account
GSO Demat account


NUMBER OF GREENSHOE OPTIONS PROPOSE:




Tata Son. 3,690,080

Sheba Properties Limited. 1,394,750

Kalimati Investment Company Limited 981,062

Af-taab Investment Company Limited . 751,988

Shapoor Pallonji Mistry. 750,000

Cyrus Pallonji Mistry . 750,000

Total. 8,317,880




THE PROCEDURE:

  • Tata Consultancy Services’ (TCS) initial public offering comes with a greenshoe option of up to 0.83 cr. equity shares.*

  • A company shall appoint one of the lead book runners as the “stabilizing agent.”

  • Green Shoe Lenders will transfer the Equity Shares to the Stabilizing Agent upon exercise of the Green Shoe Option.

  • The Equity Shares borrowed from Green Shoe Lenders or purchased in the market for stabilizing purposes will be in demat form only.

  • The monies received from the applications for Equity Shares in the Offer against the over allotment shall be kept in the GSO Bank Account and shall be used only for the purpose of stabilization of the post listing price of the Equity Shares.


Greenshoe option will be allocation firstly

  • # For Employees: Employees reservation portion in an amt of up to
  • 10% of the number of equity shares over allotment .
  • # Qualified institutional buyers (60%)
  • Non-institutional biders (15%)
  • Retail Individual Bidders (25%)
  • Assuming full demand in each category.


  • After the allocation, the Stabilising Agent shall transfer the Over-Allotment Shares from the GSO Demat Account to the respective depository accounts of successful Bidders.


  • For the purpose of purchasing the Equity Shares, the Stabilizing Agent shall use the funds lying to the credit of GSO Bank Account.

  • In the event the Equity Shares lying to the credit of the GSO Demat Account at the end of the Stabilisation Period but before the transfer to the Green Shoe Lenders is less than the Over Allotment Shares, the Green Shoe Transferor shall within five days of the end of the Stabilisation Period transfer Equity Shares in dematerialized form in an amount equal to such shortfall to the credit of the GSO Demat Account.


  • The Equity Shares transferred by the Green Shoe Transferor shall be
    returned by the Stabilising Agent to the Green Shoe Lenders in final settlement of Equity Shares borrowed, being credited into the GSO
    Demat Account,


  • Upon the return of Equity Shares to the Green Shoe Lenders the Stabilizing Agent shall close the GSO Demat Account.


  • The Equity Shares returned to the Green Shoe Lenders under this clause shall be subject to remaining lock in-period,
 
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