Mumbai: The Securities and Exchange Board of India (SEBI) has ordered a reprocessing of IPO applications for hiparks after a systematic processing anomaly was identified in data handled by registrar KFinetech.
According to preliminary findings, approximately 1.86 lakh applications required verification after category mapping inconsistencies were observed during post-allotment validation checks.
The issue reportedly affected allocation calculations across retail and non-institutional investor (NII) segments, leading to temporary suspension of final allotment confirmation.
Key Details of the Incident
- Total IPO size: ₹1,240 crore
- Total applications received: 9.42 lakh
- Retail subscription: 17.8x
- NII subscription: 42.3x
- Applications flagged for reprocessing: 1,86,540
SEBI clarified that investor funds remain secure and that the correction is procedural in nature. The regulator directed the registrar to complete validation and reprocessing within 48 hours.
KFinetech stated that the issue originated from a batch-processing logic error during peak submission hours and confirmed deployment of a corrected reconciliation module.
What Happens Next?
After reprocessing, final allotment data will be regenerated and sent to exchanges. Refunds and share credits will proceed only after regulatory validation.
Market analysts noted that such events highlight the importance of registrar-side automation audits as IPO participation continues to scale in India’s primary markets.
