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The second day of the Reliance Power IPO saw a huge rush of retail investors committing funds to the mega-issue. By late evening 11.2 lakh retail applications had been received with the retail portion of the issue subscribed three times.
And it wasn't just the Reliance IPO that was lapped up. The Future Capital offer, which closed on Wedneday, was subscribed 131 times with retail portion getting subscribed 45 times.
The unprecedented rush of IPO applications hit the online trading systems of the broking arms of some major banks, with some slowdown reported in the primary market sections of websites of HDFC Securities, ICICI Securities and Kotak Securities. Market players said that some brokers were unable to access their depository accounts.
With over 2 lakh depository accounts being opened in a week they said there was a lack of planning and the technology was not able to bear the load of applications. While HDFC Securities said there was some slowdown due to the traffic, spokespersons for Kotak and ICICI Securities said there were no problems with their websites.
"There was some slowdown on account of unprecedented rush on Tuesday," said Neeraj Jha of HDFC Bank."
"The systems are built to handle a certain capacity. With the sudden surge in traffic it took some time to adjust which is why there was a problem for an hour or so. However, we got the systems back on track quickly and there were no problems on Wednesday to the best of my knowledge," he added.
"The IPO section is separate from the secondary market trading system which was unaffected on Wednesday," said Prashant Prabhakaran of Kotak Securities. "Even with the IPO section there was no system-related problem but the huge investor rush could have caused some delay in order placement. It could have taken some time to execute," he said.
A spokesperson for ICICI Securities however said there were no problems or slow down on the site. A Reliance official also said the server overload was temporary and while there was some pressure on the system all applications were being taken, with the issue remaining open until 11 pm. Source : timesofindia.indiatimes.com |
