Reliance IPO: Rs 71,000 cr refunded in a single day | business | Hindustan Times
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Reliance IPO: Rs 71,000 cr refunded in a single day

Over Rs 71,000 crore was disbursed to unsuccessful applicants as part of the issue’s pay out process by HDFC Bank on a single day on Friday, reports BS Srinivasalu Reddy.

business Updated: Feb 03, 2008 21:38 IST
BS Srinivasalu Reddy

Here is another record of sorts for Reliance Power's initial public offering (IPO).

Over Rs 71,000 crore was disbursed to unsuccessful applicants as part of the issue’s pay out process by HDFC Bank on a single day on Friday. The repayment comes as a sequel to its mega IPO, which garnered over 49 lakh applications for a staggering over Rs 7.45 lakh crore worth of shares that set a new record last month.

“On Friday, Rs 71,000 crore has been refunded to the applicants as was due based on the allotments made by the registrars to the issue – Karvy Computershare. In all, the total repayments to applicants is expected to cross Rs 1 lakh crore and the process will be completed by Wednesday,” said Bhavesh Zaveri, executive vice-president-cash management services of HDFC Bank, which is enstrusted with the processing of completing the process.

The first batch of payouts belonged to qualified institutional investors and those of high networth individuals (HNIs).

The bank had also cleared the repayments of 3.8 lakh retail investor accounts amounting to Rs 20,000 crore on Saturday. In all, about 1,500 people were involved in the process for ensuring repayment of an unprecedented amount in the history of the country's capital markets.

“The pay-outs were planned over the last 10 days in association with the Reserve Bank of India, the registrar to the issue and the merchant bankers. RBI has played an important role facilitating routing such a big volume of payments through electronic clearing services (ECS) and electronic fund transfer (EFT),” Zaveri added.

“Systems have been prepared for clearing applicants’ complaints automatically through electronic means. Our intention is to resolve any anomalies arising from the process at the earliest,” Zaveri said. All the investors, including retail investors are expected to get all their refunds back by February 6, 2008.

HDFC Bank was one of the seven private sector collection banks involved in the process.

Unlike in the past, when 60 collection centres used to be set up for any public offering, this time around 120 collection centres were established for the Relianc Power issue.