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How do I know how many times an IPO will get oversubscribed?

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It's not easy to predict the subscription level of an IPO. The subscription level depends on factors like the issuer company fundaments, issue size, issue prices, grey market premium and market conditions.

Some analysts guess IPO over-subscription levels before IPO closes to estimate the HNI IPO Shares cost. But their prediction keeps changing until the last minute.

Most good IPOs get heavily over-subscribed in the range of 300 to 1000 times under the NII category (HNI) and 15 to 30 times in the retail category by application.

The oversubscription also depends on the demand in the grey market. The higher the demand for an IPO in the grey market, the higher are the chances of it getting oversubscribed.

It is difficult to derive the expected over-subscription of an IPO based on the historic data as there are too many variables to it.


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