Shares Issued by Well Managed and Financially Strong Companies often get Over Subscribed . Shares are said to be Oversubscribed when the Number of Shares Applied for is More than the Number of Shares Offered to the Public for Subscription . However , as the Company Cannot Allot Shares More than that Offered for Subscription , the Board of Directors will have to Allot Shares on
Pro-Rata Basis. It means that Smaller Number of Shares are Allotted to each Applicant , according to the Number of Shares Applied by Him.
