If the buzz associated with an Initial Public Offering or an IPO was not enough, the subscription number for the same is no less intriguing. Be it big-time investors or small-time enthusiasts, companies going public usually rally much interest. And to add to the buzz are allotments of IPO and the subscriptions that reflect real-time. IPO allotment is the process through which equities are shared with applicants for equities, while live subscription data helps to gauge the amount of interest an IPO is supposed to create.
What is IPO Allotment?
When a company issues equities publicly via an IPO, it issues a given number of equities to the market. Investors can apply to purchase equities from this process, and when the offer period closes, it is the registrar for the company that handles the allotment. Normally, the demand for shares is bound to exceed the supply. In other words, a few applicants will not be allocated the number of shares they applied for. This brings in the allotment step, where one gets to know how many shares of the requested number an investor is allocated, considering some factors such as the demand and the category of the investor.
While a generous allotment is particularly essential for retail investors who are gifted with a specified share of the total IPO, many subscribers get less share than what they had been hoping for or, in some cases, no share at all in cases of oversubscription.
Why Live Subscription Numbers Matter
The largest buzz of an IPO live subscription numbers. This would give the idea of what sort of demand there is for the shares in real-time. Subscription figures indicate how many times the IPO has been subscribed across the categories of investors, such as retail, institutional, and non-institutional.
How Investors Follow an IPO Live Subscription
In recent years, investors have gotten to subscribe on live numbers of the number of subscriptions is available on some platforms. This will give them relevant information on some action to be taken before the issuance closes. Some investors would apply for more shares because of heavy demand when noted. Others will stay out since they feel that there will be fierce competition in allotment processes.
Retail investors may also use subscription data live intending to establish how large institutional investors view the asset. The high demand by the institutional investor is usually seen as a positive signal.
Conclusion
This ride, from the filing to the allotment IPO, is quite an exciting one. Through the live subscription figures, the analysis of a perfect understanding of the demand in the market could be attained and strategies accordingly framed for investment. Several people look at services such as 5paisa for access to live subscription data as well as to stay ahead in the race. The excitement to see the numbers touching the skies, along with all the hullaballoo over the allotment, makes the exercise of IPO interesting for all.
Whether an investor is an old player in the game or just starting, keeping tabs on IPO live subscription figures is the only way to squeeze all one can from these public offerings.