Current IPO Subscription Status
What is the IPO subscription status?
IPO subscription status shows how many investors have applied for a company’s IPO and indicates how popular the issue is. The data is usually divided into four categories of investors:
- QIB (Qualified Institutional Buyers): Institutional investors like mutual funds, banks, and insurance companies.
- HNI (High Net-Worth Individuals): Big investors applying for larger quantities of shares.
- Retail Investors: Individual investors applying for a small number of shares.
- Employees: Shares reserved for the company’s employees.
Why do investors apply for an IPO on the last day?
Many individual investors prefer to apply for an IPO on the last day because QIBs (Qualified Institutional Buyers) and HNIs (High Net-Worth Individuals) subscriptions are mostly done on the last day. This helps retail investors estimate the IPO’s potential listing price and check its demand.
By applying on the last day, retail investors can also better assess the IPO quality and make a more informed decision.
GMP and IPO subscription correlation
There is often a positive correlation between GMP (Grey Market Premium) and IPO subscription. When the GMP is high.Moreover, the high GMP paves the higher IPO subscription numbers as the grey market premium helps investors to check the IPO’s estimated listing. As this indicates that, in the unofficial market, people are ready to pay more on issue price, which allows investors to apply on IPO.
GMP is not only for the IPO subscription data, but it also shows the IPO demand in the unofficial market.
If “ABC” Pvt Ltd has an IPO issue price of ₹150 and the Grey Market Premium (GMP) is ₹30, the estimated listing price of the IPO could be around ₹180.
Why IPO subscription data matters for investors?
IPO subscription data is important because it shows how popular an IPO is and helps investors check demand.
Let’s have an in-depth for IPO subscription data. The importance is given below.
First and foremost, the IPO subscription data indicates the IPO demand, which means more people want the shares than are available. High demand can sometimes lead to a good listing price on the stock market.
Investors can understand their chances of getting the shares. For example, in an oversubscribed IPO, retail investors may get only a small portion of the shares they applied for.
IPO Subscription Reflection on the Market Sentiment
Strong subscription reflects positive market sentiment toward the company, while a low subscription might indicate caution or a lack of interest.
Decision-Making: Investors can use this data to decide whether to apply for an IPO or wait, based on popularity and perceived demand. Additionally, individuals, especially retailers, can easily focus on the first- or second-day IPO subscription data and decide whether to apply or not.
How to check today’s IPO subscription on NSE & BSE?
There are various ways for IPO investors to check the IPO subscription data, as given below.
Visit the stock exchange website:
Here are the proper steps to check live IPO subscription numbers.
- Go to the IPO section:
- Look for links like “Public Issues” or “IPO” on the homepage.
- Find the specific IPO
- Click on the IPO you are interested in to see the subscription status
- Check the data:
- Retail, HNI, QIB, Employee subscription
- Total number of applications
- Oversubscription level
FAQs
The IPO subscription reflects how many investors have applied for the particular IPO, weather to mainboard or an SME IPO.
The retail category subscription indicates that the retailers (common individuals) apply for the IPO. That individuals apply for a smaller number of shares.
QIB stands for Qualified Institutional Buyers. This category is for big institutional investors like mutual funds, banks, insurance companies, and foreign institutional investors (FIIs).
This category is for high-net-worth individuals (HNIs) who invest more than ₹2 lakh in an IPO.
Oversubscription means the IPO has subscribed for more shares than the number of shares issued by the company.
Undersubscription happens when fewer investors apply for shares than the company is offering in an IPO.
Generally, the subscription duration for a mainboard IPO is 3 days, while for an SME IPO, it is usually 4 to 5 days.
12 Responses
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Dear Vijay Prajapati, Thanks for the reply. Appreciate your help in my understanding
What does applications means in table? What does it signify?
Hi Avinash,
It means how many application numbers applied in this IPO.
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Almost all the IPO related information available. Thank you
Very useful information
Gmp of LG Electronics
the subscription status gives more ideas when to subscribe the ipo and when to skip. IPO Watch is giving consolidated data with easy to check for all the current IPOs.