Amidst the significant enthusiasm surrounding the Bajaj Housing Finance IPO, numerous investors encountered technical difficulties that hindered their ability to participate. Many took to social media platforms to voice their frustrations with stock brokerage services and UPI payment systems, highlighting issues such as delayed UPI mandates. To successfully invest in IPOs via stock trading applications, users must authorize the UPI mandate through their respective payment apps. Customers of well-known brokerages like Groww, Zerodha, and AngelOne expressed their dissatisfaction on platform X (formerly Twitter), lamenting lost opportunities due to these technical setbacks.
Zerodha indicated that there was an average delay of approximately two hours in processing these mandates, which they attributed to complications with the sponsor banks associated with the IPO.
Mohit Mehra, Vice President of Primary Markets and Payments at Zerodha, explained that “the recent spike in IPO applications resulted in a backlog for receiving UPI mandates—averaging around two hours post-application submission. While Zerodha promptly forwarded applications to the exchange, it was the sponsor banks responsible for dispatching UPI mandates that faced delays.”
The total number of retail applications for this particular IPO surpassed 8.8 million—a record high for any domestic initial public offering. Historical data shows similar technical issues have occurred during periods of intense bidding activity for other IPOs. Brokerages without bank affiliations are required to utilize UPI payment methods when applying for IPOs; however, those linked with banks can apply directly through banking channels without experiencing reported glitches.
In December 2023, India’s market regulator Sebi made a significant change by reducing the listing timeline for IPOs from six days (T+6) down to three days (T+3). This means that new listings will now occur just three working days after an issue closes.
The Impact of Technical Glitches on Investor Sentiment
The frustration among investors highlights a growing concern regarding technological reliability within financial markets. As more individuals turn towards digital platforms for investment opportunities—especially during high-demand events like an IPO—the expectation is set higher than ever before.
Record-Breaking Retail Participation
With over 8.8 million retail applications submitted during this latest offering from Bajaj Housing Finance, it’s clear there is robust interest among individual investors seeking exposure in real estate finance sectors amid fluctuating market conditions.
Regulatory Changes: A Step Towards Efficiency
Sebi’s decision to shorten listing timelines reflects an ongoing effort toward enhancing operational efficiency within India’s capital markets framework. By streamlining processes related to initial public offerings and ensuring quicker access post-issue closure dates—investors may find themselves better positioned moving forward into future investment opportunities.
while technological challenges have marred what could have been a seamless experience during one of India’s most anticipated IPOS yet—the overall trend indicates increasing engagement from retail investors alongside regulatory advancements aimed at improving market dynamics.
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