What is IPO Subscription?
IPO subscription is a measure of demand for an IPO. If an IPO is subscribed 5x, it means the IPO has received 5 times the shares available.
Subscription Definition
IPO subscription is the ratio of shares applied for to shares offered. It indicates how many times the IPO has been oversubscribed (more demand than supply).
Subscription = Shares Applied / Shares Offered
Understanding Subscription Numbers
- 1x Subscription: Equal demand and supply, fully subscribed
- 5x Subscription: 5 times oversubscribed, high demand
- 10x+ Subscription: Extremely high demand, very popular IPO
- <1x Subscription: Undersubscribed, low demand
Subscription Categories in India
Retail Category
For individual investors applying with up to Rs 2 lakh.
Reserve: ~35% of shares
HNI Category
For High Net worth Individuals applying between Rs 2-10 lakh.
Reserve: ~15% of shares
Institutional Category
For mutual funds, insurance companies, banks, and other institutions.
Reserve: ~50% of shares
Why Subscription Matters
- Higher subscription = higher GMP prediction
- Indicates market demand and confidence
- Affects allotment chances (higher subscription = lower chances)
- Predicts listing performance
- Shows investor sentiment about the IPO
Subscription Timeline
Day 1: IPO opens at 10 AM. Subscription starts accumulating.
Day 1-3: IPO remains open. Subscription increases daily.
Last Day: IPO closes at 4 PM. Final subscription ratio determined.
Key Takeaways
- ✓ Subscription = demand for IPO shares
- ✓ Higher subscription = more demand
- ✓ Three categories: Retail, HNI, Institutional
- ✓ Affects allotment chances and GMP prediction
- ✓ Track IPO subscription daily on IPOGyani