IPO subscription is the “number of times” the IPO is subscribed by the investors.
If the IPO is oversubscribed, you may receive only a partial allocation. For example, you bid for 5 lots, if the IPO is subscribed 1x times then you will receive 5 lots of shares. But if the IPO is oversubscribed 5 times then you may receive only 1 lot or maybe none in the lottery system of allotment.
The day-wise IPO subscription data is available for 3-4 days, during which you can place bids.
After the allotment, the shares are credited to all the successful bidders in their demat accounts. And the amount is debited from their bank accounts.
Any excess amount that was blocked by your bank during the bidding process is unblocked or refunded to the investors whose bids were unsuccessful.
What are the Different Subscription Data
IPO subscription data shows the bidding interest of different categories of investors which looks like
Different investor categories include –
#1. Retail Individual Investors (RIIs)
Individual investors like you and me come under the Retail Individual Investors (RIIs) category to apply for an IPO. YOu can apply for shares for the maximum investment limit of Rs. 2 Lakhs.
#2. Non-Institutional Investors (NIIs)
Non-Institutional Investors consist of high-net-worth individuals, corporate bodies, and other eligible entities like HUF.
NIIs apply for shares in amounts above Rs 2 Lakhs.
Further, NIIs are bifurcated into two sub-segments
- Investors applying for shares worth Rs. 2 to 10 Lakhs are called – Small NIIs (sHNI)
- Investors applying for shares over Rs. 10 Lakhs are termed – Big NIIs (bHNI)
#3. Qualified Institutional Buyers (QIBs)
Qualified Institutional Buyers are mutual funds, banks, financial institutions, insurance companies, and foreign institutional investors (FIIs).
QIBs are the biggest category in terms of share application. They typically receive the largest portion (at least 50% of IPO in any case) of the shares being offered.
QIBs are considered to be sophisticated investors capable of conducting in-depth research and due diligence. They have a team of professionals who help make investment decisions.
#4. Employee Portion
A small percentage of shares offered in an IPO is kept reserved at a discounted price for employees of the company.
Keeping an employee category entirely depends on the company’s wish whether they want to or not.
Where Can I Find Day-wise IPO Subscription Data
Below-mentioned sources are where you can find day-wise IPO subscription data.
#1. How to Check IPO Subscription Status in NSE
To check the IPO subscription data for bids placed on NSE, follow these steps
- Select the IPO for which you want to check the subscription data
- Visit NSE – Upcoming IPO webpage.
- Click on NSE Bid Details or Consolidated Bid Details from the drop-down menu
The IPO data is refreshed every hour. The accurate data gets published only after 5 PM by the NSE stock exchange.
You may like to read our report on Upcoming IPOs in 2023-24 to track all the IPOs.
#2. How to Check IPO Subscription Status in BSE
Follow the below steps to check the IPO subscription data for bids placed on BSE
- Visit BSEINDIA – Public Issue webpage
- Select the IPO for which you want to check the subscription
- Click on BSE Bid Details or Cumulative Bid Details.
The subscription data will be the same as on the NSE website. There may be a possibility of slight differences due to a coalition of data.
#3. Financial News Websites
You can check IPO subscription data on Various financial news websites in India like Moneycontrol, Economic Times, Livemint, and Business Standard.
#4. IPO Tracking Websites
Several websites like 5paisa specializing in tracking IPOs provide day-wise subscription data. You need to visit their website and go to the IPO section and get subscription data there.
#5. How to Check IPO Subscription Status in Zerodha
Zerodha does not maintain day-wise or any kind of IPO subscription data.
You will waste time searching Zerodha Kite or Console for IPO subscription data. The simple and authentic way to get subscription data is NSE or BSE website.
Note – IPO subscription data is available during the IPO subscription period, which usually lasts for 3-4 days. Once the IPO is closed, the subscription data becomes less relevant as the allotment process begins.
If you have Zerodha Demat account then you may like to know the simple process to apply for an IPO through Zerodha.
How IPO Subscription Data is Useful
You can use the IPO subscription status for investing in an IPO. The subscription data provides valuable insights regarding demand and sentiment for the IPO, which can help in making a more informed decision.
But in my opinion, the right way of approaching any investment (be it an IPO or any other investment), is by doing sufficient research.
Below are some ways in which you can use the subscription status before making an IPO application:
#1. Gauge Demand
You can get an idea of the overall demand for the IPO by looking at the level of oversubscription or undersubscription.
Higher levels of oversubscription indicate strong demand, while lower subscription levels suggest weaker interest.
A heavily oversubscribed IPO indicates that there is significant investor interest in the company, which could be considered a positive signal.
#2. Allotment Probability
By assessing the subscription status, you can estimate the likelihood of receiving the desired number of shares.
In case of an oversubscribed IPO, the allotment of shares will be done on a proportionate basis. In such a scenario, you may not receive the full quantity of shares that you have applied for.
#3. Pricing Indication
The level of subscription at different price points provides insights into investor perception of the company’s valuation.
If the IPO is substantially oversubscribed at a specific price range, it may suggest that investors are comfortable with that valuation.
On the other hand, low subscription levels at certain price points indicate that the market considers the IPO to be overpriced.
#4. Market Sentiment
IPO subscription data reflects market sentiment and the prevailing mood among investors.
An IPO with high subscription levels indicates a positive market sentiment, while a low subscription level indicates fear in the market.
Note – that IPO subscription status is just one aspect of the overall investment decision-making process.
You should also research and analyzed other fundamental factors, such as the company’s financials, business model, growth prospects, industry outlook, and the management team.
You can cancel your IPO application before the closer of the IPO, in any case, if you want don’t want the allotment.
The categories of investors in IPO subscription are Retail Individual Investors (RIIs), Non-Institutional Investors (NIIs), and Qualified Institutional Buyers (QIBs).
IPO subscription data helps investors gauge demand, assess investor sentiment, and understand pricing indications, aiding in making informed investment decisions.
Oversubscription occurs when the demand for shares exceeds the number of shares offered. It indicates strong investor interest and could lead to proportionate allocation of shares.
Yes, investors can revise their IPO bids multiple times during the subscription period as long as the IPO is open for subscription.
The book-building process helps determine the issue price of the IPO by allowing investors to bid for shares at different price levels within the price band.
Investors can find day-wise IPO subscription data on the websites of stock exchanges, financial news portals, and IPO tracking websites.
The IPO subscription data is dynamic and changes throughout the subscription period.
Subscription data is an indicator of investor sentiments. You need to keep track of the latest updates from the stock exchange website and carefully consider your IPO investment strategy.