As Bajaj Housing Finance made a stellar debut on the domestic bourses, some investors could be rueing the missed chance due to technical hiccups. Nearly 14 lakh applications or 16% of total bids in the company’s Initial Public Offering (IPO) – the largest issue in 2024 – were disqualified, according to allotment documents released on Monday. This is the second-highest number of rejections in absolute terms since the Life Insurance Corporation (LIC) IPO in May 2022.
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Bankers and market participants said most disqualifications were due to operational glitches, with a chunk of them being unable to complete the UPI (Unified Payments Interface) process. There were also reports of technical issues related to UPI systems.
Tech Glitches Rob Many
“A significant cause for the rejections has been UPI-related issues, primarily due to failed mandates, either from investor non-approval or technical declines,” said Giridhar G, chief business officer, corporate registry, KFin Technologies, who was the registrar to the IPO. “Additionally, many rejections occurred when UPI mandates initiated by investors were sent to NPCI, but failed either at NPCI or the sponsor’s end.”
National Payments Corporation of India (NPCI) did not respond to a query.
The Bajaj Housing Finance IPO received 89.07 lakh applications — the highest ever. The allotment document released by the company revealed that 78.91 lakh were deemed complete and valid. After accounting for technical rejections, 74.46 lakh applications were eligible to receive the shares in the issue.
Many investors who applied through broking applications told ET they did not receive the UPI mandate for approval, whereas those who applied directly through banks reported no issues.
A spokesperson for Groww, India’s largest broker in terms of the number of clients, said there was a lag at the sponsor bank and a lot of UPI payment mandates faced delays.
Mohit Mehra, VP, primary market and payments, Zerodha, said due to the heavy volume of applications in the IPOs over the last few days, there were delays in receiving UPI mandates. “The applications were submitted instantly from Zerodha to the exchange, but the banks sending the UPI mandates i.e. the sponsor banks to the issue had some queue,” said Mehra. “This delay does not affect the application.
The UPI mandate can be accepted at any time during the IPO window by the investors.”
In May 2022, the ₹20,557 crore LIC IPO received 73.50 lakh applications, of which around 20.6 lakh were rejected. In November last year, Tata Technologies received around 73.58 lakh applications, with around 5.98 lakh being rejected.
Market participants said these rejections due to glitches call for a need to fine-tune the system.
“Applications made under the employee or shareholder quota by non-eligible investors also cause issues,” said Pranav Haldea, managing director of Prime Database Group. “There should be filters in place at the time of application to validate eligibility and prevent last-minute rejections.”
Bajaj Housing Finance IPO Allotment Status Online
The basis of allotment for Bajaj Housing Finance IPO is available now.
To check Bajaj Housing Finance IPO allotment status, follow the steps below:
- Click on the below allotment status check button.
- Select Company Name.
- Enter your PAN Number, Application Number or DP Client ID (Anyone).
- Click on Search.
On securing the allotment, you will receive the credit of equivalent shares in your Demat account.
If you have any concerns or queries about the allotment status, contact Kfin Technologies Limited either by phone or email. Investors can call on 04067162222, 04079611000 or send an email with all relevant details to bhfl.ipo@kfintech.com.
