This thread is in continuation of my last thread 'Some basic questions'. I didn't want to ask this question there, because in that case, original questions might have gone unanswered.
Recently Indiabulls offered its IPO at issue price of 19. It was oversubscribed 10 times I guess. The issue opened at 24. What factors caused the share price to increase by 5 even without a single share being traded? Was it because of over subscription which in-turn means huge demand?
What if there was no over subscription and issue was 100% subscribed? In that case should the issue have opened only at 19?
What if there was no oversubscription and issue was only 50% subscribed? In that case should the issue have opened at less than 19?
Recently Indiabulls offered its IPO at issue price of 19. It was oversubscribed 10 times I guess. The issue opened at 24. What factors caused the share price to increase by 5 even without a single share being traded? Was it because of over subscription which in-turn means huge demand?
What if there was no over subscription and issue was 100% subscribed? In that case should the issue have opened only at 19?
What if there was no oversubscription and issue was only 50% subscribed? In that case should the issue have opened at less than 19?