IPO Subscription

The subscription of the IPO is calculated based on the applications submitted by investors. The IPO subscription number indicates the demand for an IPO. It is determined by dividing the number of shares applied for by the number of shares offered.

Based on the applications received, the IPO may be undersubscribed or oversubscribed. If the demand for shares is greater than the shares offered, the issue is oversubscribed. If the demand for shares is less than those offered, the issue is undersubscribed.

The exchanges update the subscription status in real-time on their website based on the bids received.

You can access the IPO live subscription data online while the issue is open for subscription between 10am and 5pm. IPO subscription data is provided by the stock exchanges. Subscription numbers are constantly changing based on bids received by the exchanges and will be finalized at the close of the IPO.

You can access the IPO live subscription data online at any time. IPO subscription data is updated between 10:00 a.m. and 5:00 p.m. as long as the IPO is open for subscription.

Steps to check live IPO subscription status

1. Visit the website at www.chittorgarh.com.
2. From the home page, click on the IPO you want to view.
3. Click on the 'Subscription' tab.
4. Check the live subscription data.

Exchanges close bids for IPO shares at 5 p.m. on the issue closing date. They provide the bid data to the registrar for further processing. Once the registrar receives the data, it proceeds with the following activities:

• Review applications to accept valid bids and reject invalid/wrong applications.
• Complete the basis of allotment in consultation with the exchanges.
• Refund of application money in case of partial allotment or non-allotment.
• Credit the Demat account of the allottees.

The shares are then listed on the exchange and normal trading of the shares begins.

IPO subscription is calculated on real time basis by the exchanges (BSE and NSE) based on the bids received on their respective platforms during the IPO bidding session.

IPO subscription numbers are segregated into investor category-wise which shows the demand for an IPO by each investor category.

IPO subscription figures are calculated by dividing the total number of bids received in terms of the number of shares by the number of shares offered.

For example, a company offers 70,000 shares, of which 35,000 shares are offered to QIBs, 10,000 shares are offered to NIIs, and the remaining 25,000 shares are offered to RIIs.

The applications received against the above offer are 70,000 shares from QIB investors, 9,000 shares from NII and 30,000 shares from RII.

Thus, we can say that,

• IPO QIB subscription is 2x times. (70,000/35,000)
• IPO NII subscription is 0.9x times. (9,000/10,000)
• IPO RII subscription is 1.20x times. (30,000/25,000)

Overall, the IPO is said to be 1.55x times oversubscribed.

There is no rule of thumb or set procedure for obtaining a guaranteed allotment in an oversubscribed IPO.

You can follow some best practices to improve your chances of getting an oversubscribed IPO:

• Check IPO subscription status before applying.
• Avoid input errors when applying to avoid rejections.
• Apply through different accounts of family members.
• Do not forget to approve the UPI mandate in case of UPI application.
• Use employee or shareholder quota if possible.
• If multiple IPOs are open, allocate the amount based on subscription status and GMP.

One can buy the oversubscribed IPO online through UPI or ASBA through your bank or broker. The process to purchase the IPO shares remains the same regardless of the subscription status.

See the IPO Application Procedure via UPI or ASBA for the detailed procedure.

An oversubscribed IPO means that more applications have been received from investors than shares offered in an IPO. It shows that demand is greater than supply.

Example: A company offers 10 lakh shares in an IPO and receives bids for 30 lakh shares. In this case, the issue is considered to be three times oversubscribed.

It's very common for IPOs to be oversubscribed multiple times. Some IPOs are oversubscribed up to 600 times.

The oversubscription of an IPO depends on many factors:

• Size of the issue (small issues are easily oversubscribed).
• Bull market.
• Higher demand for the company.
• Reasonable price for the IPO shares.
• Trusted promoters such as Tata or L&T.

Undersubscription means that the number of applications received is less than the number of shares offered in an IPO. Undersubscription indicates the demand for the shares is less than the supply.

For example, a company offers 10 lakh shares but has received applications for only 5 lakh shares. In this case, it is called an under-subscription.

If an issue is not fully subscribed, the company has the following options:

• Extending the deadline for closing the issue. An issue may remain open for up to 10 days.
• If the issue is a partial or full offer for sale (OFS), the size of the OFS issue may be reduced and the issue successfully closed.
• The company may also withdraw the IPO.

For investors,

• An IPO application in the retail category may be cancelled by the investor at any time prior to the closing date of the offering.
• An IPO application in the NII and QIB categories cannot be withdrawn. The bid price modification (upsize) is possible as long as the issue is still open.

For companies,

If an IPO isn't fully subscribed or doesn't meet the minimum subscription criteria, the company may extend the deadline for closing the offering or reduce the OFS size. If this doesn't succeed, or if the company decides to cancel the IPO for other reasons, it may do so at any time.

Yes, investors can place a bid for IPO shares even after the market closes (except on the last day), provided the broker/bank allows them to place the order. Orders placed after market close will be forwarded to the exchange on the next business day.

Note that the IPO bidding platform of the Exchange is open from 10 am to 5 pm. Even if the broker/bank accepts your online IPO application outside the exchange's opening hours, the IPO application will not be submitted to the exchange until 10 a.m. the next day.

The NSE website displays live subscription data under the IPO tab in Market watch. Note that bids for mainboard IPOs are submitted on both the BSE and NSE IPO bidding platforms. The NSE website only displays the data of bids received on the platform in real time.

You can check the consolidated live IPO subscription status on Chittorgarh.com.

Steps to check the IPO subscription status on NSE

1. Visit NSE website nseindia.com
2. Click on the 'Market Data' tab and 'New Public Issues'.
3. Open the desired IPO for which you want to check the subscription status.
4. Select the category as NSE Bid details or Consolidated Bid details.
5. Click on bid details.
6. Investors can see the total number of bids received by different investors.

The IPO subscription period begins at 10 a.m. on the day the IPO opens for subscription and ends at 5:00 p.m. on the last day of the IPO.

Investors may subscribe for the IPO at any time during this window. Bids submitted after 5:00 p.m. (except on the last day) will be uploaded to the Exchange on the next business day. Some brokers and banks allow bids to be submitted only between 10 am to 5 pm.

The last day cut-off time for IPO application may vary from bank to bank and broker to broker. Therefore, check with your broker/bank for their respective closing times.

If the issue is more than 90% subscribed but not fully subscribed, all investors will receive the full allocation.

If the issue does not reach the minimum subscription level of 90%,

• The issuer may extend the deadline for closing the issue and reduce the issue price.
• The issuer may reduce the Offer for Sale portion of the issue.
• If this is not successful, the issuer must return the entire subscription amount to all investors. The issue is cancelled.

An under-subscription of shares occurs when an IPO receives fewer applications than shares offered.

For example, if a company offers 50,000 shares and receives applications only for 40,000 shares, it is under subscription.

In the case of under subscription, all investors receive the allotment. However, if the issue does not reach the minimum subscription rate of 90%, the issue is cancelled and the issuer refunds all money to the investors.

You can check the IPO subscription status on Chittorgarh.com.

IPO Subscription is the number of times a public issue is subscribed at BSE and NSE. IPO subscription indicates the demand for an IPO.

If the IPO subscription times is more than 1, the issue is said to be oversubscribed. If the IPO subscription times is less than 1, the issue is said to be undersubscribed and if it is exactly 1, the issue is said to be fully subscribed.

When an IPO is fully subscribed, not all investors may receive an allotment.

The allotment in a fully subscribed or oversubscribed IPO is done on proportionate or lottery based on the level of oversubscription and investor category.

A fully subscribed IPO occurs when all offered shares are sold to investors. This is a good sign for an issuer whose IPO is attracting great interest from investors.

Total subscriptions are the total number of bids received from all investors in relation to the total number of shares offered in an IPO.

The IPO subscription status can either be oversubscribed or undersubscribed. If the total number of bids received is more than the number of shares offered, the IPO is said to be oversubscribed and vice versa.

The IPO subscription status changes throughout the IPO window and is finalized at the end of the offering period.

The minimum subscription for an IPO is the minimum number of shares that a company must sell by the end of the IPO period from the total issue size.

Under SEBI regulations, each company must receive applications for at least 90% of the issue size. If the issuer does not meet the minimum subscription of 90%, it must refund the entire application amount to investors.

An oversubscribed IPO is good because an oversubscription is a sign of a good IPO. Check our IPO Subscription vs Listing Gain report for more details.

In an oversubscribed IPO, the demand for the shares is greater than the number of shares offered.

Investors believe that the company has good prospects, and therefore, investor interest in the IPO is greater as everyone is eager to buy the company's shares.

In an oversubscribed IPO, the allotment to all investors is not guaranteed.

An oversubscribed IPO is an IPO for which more bids were received than shares offered.

The oversubscribed IPO indicates a high demand for the stock. This is a positive sign for the company, as many investors want to buy the IPO. Allotment in an oversubscribed IPO is not guaranteed.

If the IPO is oversubscribed, the allotment happens on a proportionate basis or a lottery basis based on the extent of the subscription and investor category.

If the number of investors is more than the maximum number of allottees, the allotment will be made on a lottery basis, else it will be done on a proportionate basis.

Learn more about allotment in the IPO Allotment Chapter.

Investors can check the IPO subscription status to know if an IPO is oversubscribed.

When the number of bid offers is more than the number of shares offered by the issuer, the issue is said to be oversubscribed. When the IPO subscription times is more than 1, the IPO is oversubscribed.

For example, if a company offers 10,000 shares and receives bids for 20,000 shares. The issue is considered 2x oversubscribed. (20,000/10,000). The IPO subscription is calculated both at the level of individual investor categories and on an aggregate basis.

When an IPO is oversubscribed, it is not certain that you will get multiple lots. Sometimes it is also difficult to get one lot.

If the number of investors is less than the maximum number of allottees, one lot is assured and then it is allocated proportionally.

However, if the number of investors is higher than the maximum number of allottees, one lot is not guaranteed either, because the allotment is then made on a lottery basis.

It is good to apply for one lot or a little more in an oversubscribed IPO.

It does not make sense to apply for larger amounts thinking you'll get more lots, because that would mean blocking larger amounts. On the other hand, it is best to place bids for smaller lots through different accounts of friends or relatives to increase your chances of getting an allotment.

If the company does not receive the minimum subscription of 90% of the total issue size by the close of the offering, the company must refund the entire subscription amount to investors.

All investors will receive the full allotment if the subscription is more than 90% but not fully subscribed.

IPO Subscription can be checked on Chittorgarh.com. To check the live subscription data during the offering period follow the below steps:

1. Open Chittorgarh.com home page.
2. Select the IPO.
3. Click on the Subscription Tab.
4. Scroll down and check the subscription numbers and details.

The investors can place a bid for IPO shares with any of the exchange (i.e. BSE or NSE). Each exchange also provides live IPO subscription status on their websites for the bids received by them.

Steps to check IPO subscription status BSE:

1. Open the BSE live public issues website.
2. Click on live IPO.
3. Click on BSE demand schedule.

Steps to check IPO NSE subscription status:

1. Open NSE IPO page website.
2. Click on IPO.
3. Click on Bid Details.