Oversubscription is when the demand for the shares in an IPO is more than the number of shares offered in an IPO.
An oversubscription in an IPO takes place when the number of applications from investors exceeds the total number of shares that the company intends to issue.
The number of subscriptions for shares in an IPO is either higher or lower than the number of shares being issued. This scenario can lead to an oversubscribed IPO where the number of applications exceeds the number of shares available.
An IPO can be oversubscribed if there is a strong demand from investors to buy shares from the offering. There are various factors for this.
For example, Indegene IPO Subscription Details offered 2,86,25,450 shares in an IPO and received bids for 2,01,24,98,532 shares. In this case, Indegene IPO subscribed 70.30 times.
The public issue subscribed 7.86 times in the retail category, 192.72 times in QIB, and 55.91 times in the NII category.
|
Investor Category |
Subscription (times) |
Shares Offered |
Shares Bid for |
Total Amount (Rs Cr.)* |
|
Qualified Institutions |
192.72 |
8,094,069 |
1,55,98,65,945 |
70,505.94 |
|
Non-Institutional Buyers |
55.91 |
6,070,552 |
33,93,99,126 |
15,340.84 |
|
bNII (bids above ₹10L) |
62.23 |
4,047,034 |
25,18,64,613 |
11,384.28 |
|
sNII (bids below ₹10L) |
43.26 |
2,023,518 |
8,75,34,513 |
3,956.56 |
|
Retail Investors |
7.86 |
14,164,620 |
11,12,71,347 |
5,029.46 |
|
Employees |
6.62 |
296,209 |
19,62,114 |
88.69 |
|
Others |
[.] |
0 |
0 |
0 |
|
Total |
70.30 |
28,625,450 |
2,01,24,98,532 |
90,964.93 |
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