Minimum Subscription refers to the minimum amount that, in the opinion of directors, must be raised to meet the needs of business operations. This amount is required to cover the price of property purchased, preliminary expenses, repayment of borrowed money, working capital, and other usual business expenditures.

According to SEBI Guidelines, minimum subscription cannot be less than 90% of the issued amount. If this condition is not met, the company cannot proceed for allotment and must refund the entire subscription amount. If the refund is delayed beyond 8 days, the company is liable to pay interest at 15% per annum. The company must receive this subscription within 120 days from the issue of the prospectus; otherwise, the application money must be returned within 130 days.