Introduction

If you’re excited about investing in IPOs, one term you’ll always see is IPO Subscription. But what does it really mean?
 Put simply, IPO subscription shows the demand for shares. It tells you how many times the IPO has been booked compared to the shares offered.
 👉 High subscription means investors are highly interested.
 👉 Low subscription means less demand.

In this detailed guide, you’ll learn:
 ✅ What IPO subscription means.
 ✅ How it works.
 ✅ Where to check subscription status.
 ✅ Why it’s important for retail investors, HNIs, and QIBs.
 ✅ Real examples, tables, and key points to remember.

What is IPO Subscription?

When a company wants to raise money through an IPO, it offers a fixed number of shares to investors.
 Investors apply for those shares during the IPO window (usually 3 days for retail).
 At the end of each day, the exchange updates how many shares have been booked.

IPO Subscription = (Total shares applied for) ÷ (Total shares offered)

Example of Subscription

Suppose ABC Ltd offers 1 lakh shares in its IPO:

• Investors apply for 2 lakh shares.
  
  
• Subscription = 2 lakh / 1 lakh = 2x
  ✅ This means the IPO is oversubscribed twice.
  
  

Why Subscription Matters

👉 Shows demand: High subscription = strong interest = often good listing gains.
 👉 Determines allotment: Oversubscription means shares are allotted by lottery.
 👉 Influences GMP: Grey Market Premium (GMP) rises with high subscription.
 👉 Signals company trust: High QIB subscription shows big institutions trust the company.

Who Subscribes to an IPO

The subscription data is shown for three categories:
 ✅ QIB: Qualified Institutional Buyers — mutual funds, banks.
 ✅ NII/HNI: High Networth Investors.
 ✅ Retail: Small investors applying up to ₹2 lakh.

How to Read Subscription Data

Exchanges (BSE, NSE) update the live subscription every day at 5 pm during the IPO period.
 Here’s what it looks like:

Where to Check IPO Subscription Status

✅ BSE & NSE Websites:

• Visit the ‘IPO Live Subscription’ section.
  
  
• Shows real-time data.
  
  

✅ Registrar Websites:

• Some registrars display the same data.
  
  

✅ Your Broker App:

• Almost all modern broker apps show live subscription figures.
  
  

Day-wise Subscription Trend

A typical IPO trend looks like:

• Day 1: Slow start, especially for retail.
  
  
• Day 2: Picks up, HNIs and QIBs come in.
  
  
• Day 3: Last day — highest rush.
  
  

Table: Sample 3-Day Subscription

Key Takeaways

✅ Retail mostly applies on Day 3.
 ✅ QIBs usually invest on the last day — they move the numbers fast!
 ✅ Strong QIB demand means good fundamentals.

How Subscription Impacts Allotment

When an IPO is oversubscribed:

• Shares are allotted by a computerised lottery.
  
  

You may get 0, 1, or sometimes partial lots — depending on demand.