The Complete IPO Guide for Indian Investors · Chapter 10 of 15
Understanding IPO Subscription Data
Subscription multiples
The subscription figure divides the number of shares bid for by the number of shares on offer, per category. A QIB subscription of 40× means institutions bid for 40 times the shares set aside for them.
What each category suggests
QIB demand shows how large institutions, who analyse businesses for a living, value the issue. NII demand is often influenced by leverage and short-term funding, so it can swing sharply on the last day and does not always reflect long-term conviction. Retail demand shows the mood of smaller investors. The pattern across the three days matters as much as the final figure.
The day-three effect
Most institutional and NII bids arrive on the last day, so early figures understate the final result. An issue that looks slow on days one and two can still end strongly subscribed, and a flashy day-one figure can fade.
Anchors and subscription
Anchor allotments are not counted in the public subscription number. A strong anchor book plus a strong QIB subscription is generally a better sign than retail demand alone.
Limits of the data
Subscription is demand at the price band, not a guarantee of listing gain or of later performance. Use it as one signal alongside valuation and the quality of the business.
Where to find it
LiveIPOData updates live subscription for every open issue, by category, and keeps the history so that you can compare the final numbers with what happened at listing.
Key takeaways
- Subscription is shares bid divided by shares offered, by category.
- Most bids arrive on the last day.
- QIB demand is the most informative; NII demand can be leveraged.
- High subscription is a signal, not a promise.
Next: Chapter 11. Grey Market Premium (GMP): What It Is and How to Use It