When an IPO gets more bids than the issue size, the issuer can only allot proportionately. At times the oversubscription will be too high so investors in the IPO only get a fraction of what they applied for. Let us look at the actually applications received and oversubscription in case of HDFC AMC IPO in the table below.

HDFC Asset Management Company Limited

Sr.No.

Category

No.of shares offered/reserved

No. of shares bid for

No. of times of total meant for the category

1

Qualified Institutional Buyers (QIBs)

44,35,511

8527,59,362

192.26

1(a)

Foreign Institutional Investors(FIIs)

3712,04,964

1(b)

Domestic Financial Institutions(Banks/ Financial Institutions(FIs)/ Insurance Companies)

2167,02,226

1(c)

Mutual funds

694,49,848

1(d)

Others

1954,02,324

2

Non Institutional Investors

33,26,634

6491,83,951

195.15

2(a)

Corporates

1943,56,604

2(b)

Individuals(Other than RIIs)

4198,11,418

2(c)

Others

350,15,929

3

Retail Individual Investors(RIIs)

77,62,145

522,27,734

6.73

3(a)

Cut Off

439,22,268

3(b)

Price bids

83,05,466

4

Employees

8,80,000

13,34,411

1.52

4(a)

Cut Off

10,71,616

4(b)

Price bids

2,62,795

5

Shareholders

24,00,000

64,56,203

2.69

5(a)

Cut Off

54,18,608

5(b)

Price bids

10,37,595

Total

188,04,290

15619,61,661

83.06

As can be seen in the above table, the retail portion is oversubscribed by about 6.7 times but the oversubscription in case of the HNI segment and the QIB segment is humongous. Normally, the level of oversubscription determines the listing price and also the post listing performance.