Oversubscribed Issue

Oversubscribed Issue When there are more shares applied for than are to be issued. In such cases a minimum number of shares, say, 100 shares, is allotted to lucky applicants whose names may come up in the drawing of lots, where the odds depend upon the number of shares applied for ,i.e. the larger the application, the better the odds. In a bull market, good public issues tend to get oversubscribed, sometimes more than 97 times (e.g., Tata Honeywell). See HOT ISSUE.

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