IPO Quiz 12: Understand RII, QIB, NII IPO Subscription Status

Welcome to your IPO Quiz 12: Understand RII, QIB, NII IPO Subscription Status

Are you ready to test your knowledge of IPO subscriptions and investor categories like RII (Retail Individual Investors), QIB (Qualified Institutional Buyers), and NII (Non-Institutional Investors)?

IPO subscription numbers reveal valuable insights about market demand and investor sentiment. But do you really know how to read them?
Take this quiz to find out how well you understand what those “X times subscribed” headlines actually mean — and what they signal for your IPO investment decisions.

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1. What does the IPO subscription status primarily reflect?

The expected listing gains of the IPO

The number of shares allotted to each applicant

The interest rates on IPO funding

The demand for IPO shares across investor categories

2. What does it typically indicate if the QIB category is subscribed more than 5 times?

Strong institutional confidence in the company

Retail investors are not showing interest

The IPO is priced very low

The company is struggling to raise funds

3. What is the maximum investment allowed under the Retail Individual Investor (RII) category in an IPO?

₹1 lakh

₹3 lakhs

₹2 lakhs

₹5 lakhs

4. Who typically falls under the Non-Institutional Investor (NII) category?

HNIs and investors applying for more than ₹2 lakhs

Mutual funds and foreign investors

Bank promoters

Market regulators

5. What is a common reason for high retail subscription in an IPO?

Higher commission from brokers

Strong brand reputation and positive media buzz

Lack of institutional interest

Weak fundamentals

6. How are shares typically allotted to QIBs in case of oversubscription?

On a proportionate basis

Based on earliest application

Via lottery system

As per SEBI discretion

7. Which of the following is a valid reason for low NII subscription in an IPO?

High retail interest

Less opportunity for short-term listing gains

High institutional participation

Company already listed

8. If an IPO shows a total subscription of 30x, what does it mean?

30 people applied for each share

30 times more demand than the available shares

IPO was postponed

Only 30% of shares were sold

9. What typically happens in retail allotment when the IPO is oversubscribed?

Everyone gets equal shares

Shares are given based on bid amount

Allotment is done via a lottery system

Preference is given to first-time investors

10. What is one key trait of QIB investment behavior in IPOs?

Long-term investment based on detailed analysis

Momentum-based quick exits

Driven by media and hype

Primarily for dividend gains

11. What is the typical IPO reservation for Qualified Institutional Buyers (QIBs)?

15%

50%

35%

25%

12. Why is it important for retail investors to track IPO subscription status?

To find out the IPO closing time

To assess their chances of allotment and overall demand

To know if QIBs have sold their shares

To receive pre-IPO dividends

13. When all three categories — RII, QIB, and NII — show high subscription levels, it typically indicates

The IPO is risky

Strong market interest and confidence

Poor fundamentals

High debt in the company

14. A high grey market premium (GMP) can indicate

Poor company performance

Declining investor interest

Expectations of good listing gains

Strong promoter selling

15. Which investor category is generally allotted the highest portion in most IPOs?

Retail Individual Investors (RII)

Non-Institutional Investors (NII)

Qualified Institutional Buyers (QIB)

Promoters

16. What does it mean if the IPO subscription for QIBs is less than 1x?

High investor confidence

Low institutional interest or concerns about company fundamentals

Strong short-term gain expectations

High grey market premium

17. Which investor category is most likely influenced by grey market premiums?

Retail and NII investors

QIBs

Promoters

Underwriters

Congratulations! You’ve completed the IPO Subscription Status Quiz!
Well done! Understanding how to interpret IPO subscription figures across RII, QIB, and NII categories helps you make more informed decisions. While high subscription levels signal strong demand, always assess company fundamentals and your own investment goals before applying. Knowledge is your best IPO strategy!

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