Explanation:

The correct answer is option 'D' - Oversubscription of shares. Let's understand why.

Overview:
In this scenario, Vinod Limited invited applications for subscription of 10,000 equity shares at a price of Rs.10 each. However, the company received applications for 25,000 shares, which is more than the number of shares available for subscription. This situation is known as oversubscription of shares.

Meaning of Oversubscription:
Oversubscription occurs when the number of shares applied for by investors exceeds the number of shares available for subscription. It is a common phenomenon in the primary market where companies issue shares to raise capital. Investors show a higher interest in subscribing to the shares than what is actually available.

Causes of Oversubscription:
There can be several reasons for oversubscription of shares, including:

1. Attractive Offering: The company's shares are in high demand due to factors such as strong financial performance, growth potential, or market sentiment.

2. Limited Supply: When the supply of shares is limited, it creates a scarcity value, leading to oversubscription.

3. Market Speculation: Speculators and investors anticipate future price appreciation and subscribe to shares with the intention of selling them at a profit.

Impact of Oversubscription:
Oversubscription can have both positive and negative impacts:

1. Positive Impact:
- Increased Demand: Oversubscription indicates high investor interest and demand for the company's shares.
- Higher Valuation: It can result in a higher valuation for the company if the oversubscription is due to positive market sentiment and strong fundamentals.
- Successful Capital Raise: The company can raise additional capital by issuing more shares than initially planned.

2. Negative Impact:
- Allocation Challenge: The company needs to decide how to allocate shares among the applicants, which can be a complex process.
- Disappointment: Not all applicants may receive the desired number of shares, leading to disappointment among investors who did not get their desired allocation.

Conclusion:
In the given scenario, Vinod Limited received applications for 25,000 shares, which is 2.5 times more than the available 10,000 shares. This oversubscription indicates high demand for the company's shares. The company will need to allocate the shares among the applicants based on a predetermined allotment criteria.