Merritronix IPO

IPO subscription indicates the demand for an IPO. A subscription of 5x means the IPO received applications for 5 times the shares offered. Higher subscription generally indicates strong demand.

Category Breakdown

• Retail Individual Investors (RII): Applications up to ₹2 lakhs. Retail quota is typically 35% of the total issue size. If oversubscribed, allotment is done through lottery.
• Non-Institutional Investors (NII/HNI): Applications above ₹2 lakhs. NII quota is typically 15% of the issue. Can be further divided into sNII (small, ₹2L-₹10L) and bNII (big, above ₹10L).
• Qualified Institutional Buyers (QIB): Institutions like mutual funds, insurance companies, banks, etc. QIB quota is typically 50% of the issue. At least 5% is reserved for mutual funds.
• Employee/Shareholder Quota: Some IPOs reserve a portion for company employees or existing shareholders at a discounted price.

What Does Subscription Mean for Allotment?

Higher subscription in a category means lower chances of allotment in that category. For example, if retail category is subscribed 10x, your chances of getting allotment (if you applied) are approximately 1 in 10, subject to lottery.