What is IPO Subscription Data?
Subscription data shows how many times an IPO is subscribed across different investor categories. This data is released by stock exchanges during the IPO period and provides valuable insights into investor demand.
Understanding Subscription Numbers
What "Times Subscribed" Means
If an IPO is "10x subscribed" in a category:
- Investors have applied for 10 times the shares available
- Example: If 10 lakh shares are reserved for retail, applications received for 1 crore shares = 10x subscribed
- Higher subscription = more demand
Category-wise Breakdown
QIB (Qualified Institutional Buyers)
Includes mutual funds, insurance companies, FPIs, banks:
- 50% of IPO reserved for QIBs
- Smart money indicator
- Strong QIB subscription = institutional confidence
NII (Non-Institutional Investors / HNI)
Investors applying for more than ₹2 lakh:
- 15% of IPO reserved for NIIs
- Split into sNII (₹2-10L) and bNII (>₹10L)
- Indicates HNI interest and confidence
Retail Individual Investors (RII)
Applications up to ₹2 lakh:
- 35% of IPO reserved for retail
- Reflects mass investor sentiment
- Often follows market buzz/sentiment
When Subscription Data is Released
Stock exchanges publish updates:
- Day 1 EOD: First day subscription
- Day 2 EOD: Second day cumulative
- Day 3 (Close): Final subscription
- Additional updates at 5 PM and 7 PM IST
Interpreting Subscription Patterns
Strong Subscription Profile
| Category | Strong Signal |
|---|---|
| QIB | >10x subscribed |
| NII | >5x subscribed |
| Retail | >3x subscribed |
| Overall | >5x subscribed |
Weak Subscription Profile
| Category | Weak Signal |
|---|---|
| QIB | <1x subscribed |
| NII | <1x subscribed |
| Retail | <1x subscribed |
| Overall | <1x subscribed |
What Different Patterns Indicate
High QIB, Low Retail
- Institutions see value retail investors don't
- May indicate complex/niche business
- Generally positive signal
High Retail, Low QIB
- Retail FOMO without institutional backing
- Potentially concerning signal
- May indicate overexcitement
High Across All Categories
- Broad-based demand
- Strong positive signal
- Usually leads to good listing
Low Across All Categories
- Limited interest in the IPO
- Potential valuation concerns
- May get full allotment but weak listing
Using Subscription Data for Strategy
Before Applying
- Monitor Day 1 and Day 2 subscription
- Strong early subscription confirms demand
- Weak subscription may signal to skip
Calculating Allotment Probability
For retail (lottery system):
- Probability ≈ 1 / (Retail Subscription Times)
- 10x subscribed = ~10% chance
- Multiple applications increase odds
For NII Category
Calculate expected allotment:
- Expected shares = Applied shares / Subscription times
- Higher subscription = less allotment per application
- Consider capital efficiency
Common Questions
Can I Apply After Seeing Subscription?
Yes, you can:
- Apply on later days based on subscription trends
- But ensure application is submitted before IPO closes
- Last day often has technical rush
Does High Subscription Guarantee Listing Gains?
No, but it improves probability:
- High demand usually leads to better listing
- But market conditions on listing day matter
- Oversubscription doesn't mean overvaluation is okay
Why Isn't My Category Filling Up?
Different categories have different dynamics:
- QIBs often come in on Day 3
- Retail may apply early based on buzz
- NII depends on funding costs and expectations
Where to Find Subscription Data
- NSE: nse.india.com (IPO Dashboard)
- BSE: bseindia.com (IPO section)
- IPO Tips: Real-time updates
- Broker Apps: Often show updates
Conclusion
Subscription data is a valuable real-time indicator of IPO demand. Strong subscription across categories, especially QIB, is a positive signal. However, subscription should be viewed alongside GMP, company fundamentals, and market conditions. Use subscription data to make informed decisions about whether to apply and to set expectations for allotment and listing performance.