IPOs
What is IPO subscription?
Also called: Subscription status, Oversubscribed
Hinglish mein padhein: IPO subscription kya hota hai?
Subscription shows how many times the shares on offer have been bid for, by category — QIB, NII and retail.
An issue subscribed 50× received bids for 50 times the shares available. Heavy QIB demand is often read as a signal of institutional confidence.
High subscription also means lower chances of allotment for retail applicants.
Related terms
- QIB, NII and RIIIPO shares are split into categories: QIBs (institutions), NIIs or HNIs (individuals and firms bidding above ₹2 lakh) and RIIs (retail, up to ₹2 lakh).
- IPO allotmentAllotment decides who gets shares in an IPO. When retail demand exceeds supply, lots are allotted by computerised lottery.
- IPO (Initial public offering)An IPO is when a private company sells shares to the public for the first time and lists them on a stock exchange.