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An integral aspect of the underwriting agreement grants the issuer the ability to authorize additional shares, usually around 15 percent, to be distributed by the syndicate in the event of an oversubscribed offering. This is also known as the overallotment option. This provision serves as a safeguard for the issuer to meet the demand for their shares and for the syndicate to potentially earn additional profits.

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Effective Date

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Venture Capital

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Filing

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Bankers to the Issue

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Secondary Offering

Understand the meaning and definition of Secondary Offering in the context of stock market, trading, and investments.

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Paid Up capital

Understand the meaning and definition of Paid Up capital in the context of stock market, trading, and investments.

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