The company offered 30,000 shares to the public.
The public applied for 50,000 shares.
Since the number of shares applied for (50,000) is greater than the number of shares offered (30,000), this is a case of over subscription.
Over subscription occurs when the demand for shares exceeds the supply. In such cases, the company typically:
- Rejects some applications (as done here for 10,000 shares)
- Makes pro-rata allotment to remaining applicants (as done for the remaining 40,000 applications against 30,000 shares available)
The excess demand (50,000 - 30,000 = 20,000 shares) clearly indicates over subscription.