What Is Oversubscription in IPO?
5paisa Research Team
Last Updated: 20 Aug, 2024 04:13 PM IST

Content
- Introduction
- What Does Oversubscription in IPO Mean?
- What Are the Reasons for Oversubscription in IPO?
- How Does Oversubscription in IPO Work?
- What Are the Key Factors Responsible for Oversubscription in IPO?
- Which Parameters Are Involved in Oversubscription in IPO?
- Wrapping Up
Introduction
Oversubscription is the number of shares in an IPO applied for more than the total number of shares on offer. The phenomenon occurs when the public has been so keen to invest in a new company that they have offered more money than the company needs or is prepared to accept.
Trying to figure out the best offering size for your IPO? It can be challenging as there are many factors to consider.
Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. For detailed disclaimer please Click here.