Bajaj Housing Finance scripted history with its initial public offering as the Bajaj Group company became the first Indian company to attract bids for more than Rs 3 lakh crore but the much-awaited issue left some investors disappointed as they did not get the mandates to block the amount.
The issue saw a solid bidding and was overall subscribed 63.61 times. The quota for qualified institutional bidders (QIBs) was booked a stellar 209.36 times. The quota for non-institutional investors was subscribed 41.51 times. The portion reserved for shareholders, employees and retail investors saw bidding for 17.53 times, 2.05 times and 7.04 times, respectively.
A large number of investors are disgruntled as they see this as a missed opportunity to apply for the Bajaj Housing Finance IPO. They are complaining over the social media platform 'X' (formerly known as Twitter) tagging their brokerage firms including Zeroda, Groww, IIFL Securities, Upstox and more.
Applications without a mandate will be rejected. Application with multiple applications with same PAN numbers, mismatch of application ID, applications made in wrong categories and mandates made after the cut-off times are rejected, said Prashanth Tapse, Senior VP (Research) at Mehta Equities.
Tapse added that there will be high chances of rejections in the shareholders category as investors may have bought the IPO after 30 August 2024, which was the cut-off to determine the eligibility for this category. Investors buying shares after the cut-off date and applying in the category will also have to face rejection.
Narendra Solanki, Head of Fundamental Research at Anand Rathi Shares & Stock Brokers said that there is not a single authority who shall be blamed for the delay in the IPO mandate request. Such things happen due to technical glitches or the demand for a particular issue is too high, he said.
The IPO of Bajaj Housing Finance was open for bidding between September 9 and September 11. The Pune-based company had offered its shares in the fixed price band of Rs 66-70 per share with a lot size of 214 shares. The company raised Rs 6,560 crore via its primary offering, which included a fresh share sale of Rs 3,560 crore and an offer for sale worth Rs 3,000 crore.
Explaining the process, Trivesh D, COO at Tradejini, a discount broking firm said that all applications up to Rs 5 lakh are made through ASBA process, which is initiated by the exchanges and then transferred to the banking partners after which the request comes to the applicant on their applied UPI platform. This process usually takes 60-90 minutes, he said.
The Application Supported by Blocked Amount (ASBA) process allows investors to apply for public issues like initial public offers (IPOs) and follow-on public offers (FPOs) without making an immediate payment. The investor authorizes a self-certified syndicate bank (SCSB) to block funds in their account.
Investors, whose money is not withheld with banking partners as their applications have not been submitted to clearing participants, shall stand rejected. Broking platforms have limited authority in facilitating UPI mandate creation but no single entity can be blamed for the delay, added Trivesh D, who claims no complaints for UPI mandate on his platform.