Learn · Reading the numbers
How to read IPO subscription numbers
By InvestorTrack team · Last reviewed · 7 min read
Subscription is the best measure of demand for an IPO while it is open. It says how many times the shares on offer have been bid for. A number like 38x sounds simple, but where it comes from, when it is measured and which category it describes all change what it means. This guide covers how to read it.
What subscription means
Subscription = shares bid for ÷ shares on offer. At 1x, every share on offer has been bid for. At 0.4x, only 40% have. At 38x, bids were placed for 38 times the shares available. The figure counts bids in shares, not the number of people, and it can include bids that are later rejected.
It is reported for the issue as a whole and for each category. The categories matter more than the total, because each is subscribed and allotted on its own. See IPO investor categories.
Reading each category
Where the source gives it, our pages split NII into S-HNI and B-HNI, and show a blank category as a dash, never as zero.
Why the numbers change through the issue
IPO bidding runs for three working days, and demand rarely builds evenly. On day 1 the numbers are usually low. The big jump normally comes on the last day, especially in the QIB and HNI categories, in the final hours before the 5:00 PM close. So a modest number early on says little about the final one. The day-wise chart and table on each IPO's Subscription tab show how it built up.
The figure we label final is the reading taken after bidding has closed. Until then, it is the latest reading, and it is stamped with the time it was taken.
What a high or low number does and does not say
- High subscription means strong demand for the shares at that price, which tends to be good for listing demand. It does not say the business is good or the price is fair.
- It makes allotment harder. At 50x retail, most applicants get nothing. See how the allotment lottery works.
- A very high number on a small issue carries less weight than the same number on a large one, because a small amount of money can be many times a small issue. This is common in SME IPOs.
- Low subscription is not a verdict on the company, but an IPO that is not fully subscribed in a category can be left with unsold shares in it, which are handled as the offer document describes.
- Look at the split. A total of 12x can come from a QIB figure of 40x and retail of 3x. Check which categories carry the number.
Reading it next to GMP
Subscription and GMP often move together, since heavy demand pushes the grey market up. When they disagree, for example a high GMP with weak QIB demand, it is worth asking why. Neither is a forecast. See what GMP is and how to read it.
Past IPOs give some context. The Subscription tab of each IPO shows how past IPOs with a similar total subscription listed, drawn from our archive of past IPOs, with the number of IPOs behind it. It describes the past, not the next listing.
Frequently asked questions
What does 50x subscription mean in an IPO?
It means bids were placed for 50 times the number of shares on offer in that category or in total. It shows demand, and it also means most bids will not be allotted in full.
Why is QIB subscription low on the first day?
Institutions tend to place their bids late, often in the final hours of the last day. So QIB subscription typically jumps on the closing day.
Which subscription number matters most?
It depends on what you want to know. Retail shows how ordinary investors see the IPO and your chance of allotment. QIB shows institutional interest. Check the categories, not just the total.
Is the subscription number final during the issue?
No. It is a live figure that changes until bidding closes. The final figure is the one published after the close.
Does high subscription guarantee a listing gain?
No. It indicates demand at the issue price, but the listing price depends on the market on the day, and some heavily subscribed IPOs have listed flat or lower.