Two smoking hot IPOs choke India's largest broking site Zerodha

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Two smoking hot IPOs choke India's largest broking site Zerodha
Nithin Kamath, co-founder, Zerodha
  • Investors rushed to Zerodha as two exciting IPOs⁠— from IRFC and Indigo Paints⁠— were open for subscription.
  • CEO Nithin reportedly admitted that the systems were down for a bit, but not completely crashed.
  • Zerodha has nearly 3 million users, as per data in September 2020, and is the largest institutional broker in the country.
  • Check out the latest news and updates on Business Insider.
India's largest institutional broking firm Zerodha’s platform crashed during the peak market hours on Wednesday, as users rushed to place orders for the two hot initial public offers in the market — Indian Railway Finance Corporation and Indigo Paints.

Furious investors complained on Twitter as the website restricted them from applying for the IPOs. Zerodha currently owns the largest share of the pie in the institutional broking industry and has nearly 3 million users, as per data in September 2020.

Zerodha’s CEO Nithin Kamath told ET that the systems were down for a bit, but not completely crashed. “Multiple tries would have worked. The IPO has a lot of people trying to apply at the same time. It is slow, but working,” he added. Business Insider reached out to Zerodha for comments but we are yet to receive a response.

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According to the Down Detector website, the outage peaked around 11:15 am and normalised around 5 pm, when the market closed for IPO subscription.

Hot bets — IRFC and Indigo Paints

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The investors have been going crazy as the IPO bonanza has lit up the street once again. The IRFC’s ₹4,634 crore IPO concluded today with a subscription of a little over 3 times the offer value, and at the same time, Indigo Paints’ ₹1000 crore IPO opened for public subscription — the issue was subscribed fully within a few hours.

Both the IPO received top recommendations from nearly all brokerages based on various factors from strong valuation to robust business growth and healthy financials. The Indigo Paints’ IPO was hot in the grey market, even before opening for public subscription. The grey market data showed that people were ready to pay a premium of ₹800-810 over the set price band of ₹1480 - ₹1490 per share.

SEE ALSO: Jack Ma resurfaces – Alibaba founder makes his first public appearance after he was feared to be “missing” for nearly two months

Indigo Paints’ ₹1,000 crore IPO is a hit even before it opened⁠ for subscription— here’s why

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