What is IPO oversubscription?
When a company decides to list on stock exchanges through the IPO route, it offers shares which are open for subscription. Following this, investors (individual as well as institutional) bid for the shares of the company. If the company receives more bids than the shares it has offered, it means that the IPO has been oversubscribed. Investors must look at the total subscription numbers to find out if an IPO has been oversubscribed as the exchanges also provide category-wise numbers. Oversubscription indicates high demand for the company shares and a potential for listing gains.
Courtsey : Upstox (start Karke Dekho)
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