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How to know if IPO is oversubscribed?

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Investors can check the IPO subscription status to know if an IPO is oversubscribed.

When the number of bid offers is more than the number of shares offered by the issuer, the issue is said to be oversubscribed. When the IPO subscription times is more than 1, the IPO is oversubscribed.

For example, if a company offers 10,000 shares and receives bids for 20,000 shares. The issue is considered 2x oversubscribed. (20,000/10,000). The IPO subscription is calculated both at the level of individual investor categories and on an aggregate basis.


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