The Unified Payment Interface (UPI) IPO saw tremendous adoption and usage in May, coinciding with the Life Insurance Corporation of India IPO.
According to data from National Payments Corporation of India, more than 45,000 mandates for UPI’s IPO were created in May and 23.97,000 mandates were executed in the month.
This is much more than 10.57 lakh mandates created in April when only 2.38 lakh mandates were executed.
According to the data, up to 12.41 lakh mandates were created at SBI, 7.26 lakh at HDFC Bank and 5.18 lakh at ICICI Bank in May.
In total, there are 28 UPI apps live at the IPO, six sponsor banks and 51 banks eligible to act as issuer banks on the platform.
Mandate Creation means a transaction where a Client has successfully created a block of funds in the bank account for an IPO application. Execution of mandate is a transaction where the client has applied for an IPO and has been allocated shares for which funds have been debited from their account.
Retail investors can bid up to 5 lakh on an IPO using the UPI IPO payment facility for shares.
LIC’s IPO had seen tremendous participation from private investors. The portion reserved for eligible policyholders drew 6.12 times, while that for eligible employees drew 4.4 times and the retail category drew 1.99 times.
DIPAM Secretary Tuhin Kanta Pandey had highlighted the strong retail involvement in LIC’s IPO, noting that over 50 lakh demat accounts had been opened since November 2021.
May was also a busy listing month with no less than eight companies including LIC, Delhivery and Paradeep Phosphates tapping the capital markets.
UPI’s IPO facility had seen less consumer interest in the previous months, with just 4.3 lakh mandates created in March and around 99,4k in February this year.
Previously, UPI’s IPO had hit record highs in November and December 2021, when up to 76,000 and 73,000 mandates were created on the platform.
Published on
June 12, 2022
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