Some investors miss out on Bajaj Housing Finance IPO due to missed UPI mandates, users complain on social media

With a string of Initial Public Offerings (IPO) being made by companies across sectors, investors are practically spoilt for choice.

With the IPOs of Baazar Style Retail, PN Gadgil Jewellers and Bajaj Housing Finance just concluded, there are many more IPOs lined up in the near future.

In August alone, 17 entities filed their Draft Red Herring Prospectus (DRHPs) with SEBI, the highest in a month in over a year.

On social media platform X (formerly Twitter), investors have claimed that they applied for the Bajaj Housing Finance IPO but did not receive mandates.

Some users also wrote that they got the amount blocked, but the phone banking app did not get updated.

R.K., the founder of IPO Mantra, wrote on X (formerly Twitter) that he received many complaints on Wednesday (i.e., the last day of Bajaj Housing Finance IPO) that investors applied in Bajaj Housing Finance IPO through UPI but didn't receive mandates.

“All those applications are rejected. I tweeted about this problem earlier as well and had advised investors to opt for Internet banking instead of UPI,” he wrote.

Some users wrote that they faced this issue with Zerodha and GPay. Zerodha responded by saying they are just intermediaries who submit the application and have no control over the mandate.

Some people also said that the bank's IPO platforms were choked, and one Amit Sethi claimed that Axis Bank's ASBA facility was down while other banks were also down.

“After BajajIPO it’s clear that banks are not ready to handle payment mandates of this large scale. Several investors reported delayed UPI mandates, ASBA by some banks stopped working,” he wrote.

Another user – Parth Shah – wrote that there are super issues in the bank system since the bid status turned to rejected even before the cut-off date. On this, NPCI responded by suggesting that the user speak to the respective bank for better assistance.

Applying for IPO through UPI

In case you want to try your luck as you apply for an IPO via UPI, you can follow these steps:

1. When you enter the bid details while applying for an IPO, you need to enter the UPI ID. Thereafter, you will receive the block mandate request on the app.

2. Upon receiving the request, you will enter the UPI PIN.

3. Now, there could be three scenarios: either you will receive a full, partial, or no allotment of securities.

A. In case of full allotment: The blocked funds will get debited

B. In case of partial allotment: Some shares will be allocated and partial funds will be unblocked.

C. In case of no allotment: The blocked funds will be unblocked after the expiry date of the mandate, and they will be released.