Oversubscription means the demand for the IPO was greater than the supply.

Example: If the issue size was 1 lakh shares and it received bids for 10 lakh shares, then the IPO is said to be oversubscribed by 10 times.

Greater oversubscription is a sign of greater investor interest and usually happens for popular or hyped companies and quality companies with strong brand names and reasonable valuations.

The oversubscription sometimes has an impact on the listing price of the stock.