Distinguish between Over-Subscription and Under Subscription.
- Shares Applied : Number of shares applied is more than the shares offered for subscription.
- Acceptance : All the applications are not accepted. Some are rejected. Alternatively, shares are allotted on pro-rata.
- Refund : Excess application money is to be refunded or adjusted towards allotment.
- Minimum Subscription : In case over-subscription, company does not face such a problem.
- Shares Applied : Number of shares applied is less than the shares offered for subscription.
- Acceptance : All the applications for shares are accepted, ie., full allotment is made
- Refund : As all the applications are accepted, there is no excess money to be refunded.
- Minimum Subscription : The company may face the problem of Minimum Subscription.