How to Interpret IPO Subscriptions
Subscription data reveals the exact market demand for an IPO. Unlike Grey Market Premium (GMP) which is unofficial and subject to manipulation, subscription numbers are verified by the exchanges (BSE/NSE).
- QIB (Qualified Institutional Buyers): Banks, mutual funds, and FIIs. They usually bid on the final day. High QIB demand (>50x) indicates smart money is highly confident in the company's valuation.
- NII (Non-Institutional Investors): High Net-Worth Individuals (HNIs). This category is often split into sNII (bids below ₹10L) and bNII (bids above ₹10L). HNIs use leverage to apply for IPOs, meaning high demand here usually aligns with high listing gains.
- Retail: Retail investors applying up to ₹2 Lakhs. Overwhelming retail demand often indicates massive public hype, but does not always guarantee a successful listing if institutions do not support the issue.