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    HomeBusinessUPI IPO facility sees huge spike in mandate-creation in May

    UPI IPO facility sees huge spike in mandate-creation in May


    Money & Banking

    Surabhi | Mumbai, June 12 | Updated on: Jun 12, 2022

    Coincides with the LIC IPO, which had huge retail investor interest

    Unified Payment Interface’s (UPI) initial public offering facility witnessed huge adoption and usage in May, coinciding with the IPO of Life Insurance Corporation of India.

    More than 45 lakh mandates were created for UPI IPO in May, and 23.97 lakh mandates were executed in the month, according to data with the National Payments Corporation of India.

    This is much higher than 10.57 lakh mandates created in April when just 2.38 lakh mandates executed.

    According to the data, as many as 12.41 lakh mandates were created with SBI, 7.26 lakh with HDFC Bank and 5.18 lakh with ICICI Bank in May.

    In all, there are 28 UPI apps live on IPO, six sponsor banks and 51 banks that are eligible to act as issuer banks on the platform.

    Mandate-creation means a transaction where a customer has created a successful block of amount in the bank account for an IPO application. Mandate-execution is a transaction, where the customer has applied for an IPO and has been allotted shares for which funds have been debited from their account.

    Retail investors can bid for shares up to ₹5 lakh in an IPO through the UPI IPO payment feature.

    LIC IPO had seen tremendous participation from retail investors. The portion reserved for eligible policy holders was subscribed 6.12 times, while that for eligible employees was subscribed 4.4 times and retail category 1.99 times.

    DIPAM Secretary Tuhin Kanta Pandey had highlighted the strong retail participation in LIC’s IPO, and had noted that over 50 lakh demat accounts had been opened since November 2021.

    May was also a month with hectic listing activity and, as many as eight companies, including LIC, Delhivery and Paradeep Phosphates, tapped the capital markets.

    UPI’s IPO facility had been registering lower consumer interest in the previous months, with just 4.3 lakh mandates created in March and about 99,400 created in February this year.

    Previously, UPI IPO had seen a record high in November and December 2021, when as many as 76 lakh and 73 lakh mandates were created on the platform.

    Published on June 12, 2022

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