Record 7.7 million IPO mandates created via UPI in July, shows data

 The figure for July was almost 4 times higher than that of June when 1.94 million mandate creation requests were made through UPI

A record 7.66 million initial public offering (IPO) mandates were created through the unified payments interface (UPI) in July amid strong retail investor interest in the primary market, according to data released by the National Payments Corporation of India (NPCI), the umbrella entity for retail payments in India.

The figure for July was almost 4 times higher than that of June when 1.94 million mandate creation requests were made through UPI.

July proved a blockbuster month for IPOs with the likes of Zomato tapping the capital market. The company’s IPO garnered 3.2 million retail applications, the bulk of which were made through UPI. There were also IPOs of GR Infraprojects, Clean Science, and Tatva Chintan which saw a large number of applications.

Of the 7.66 million mandates created in July, only 532,943 or 6.94 per cent were executed.

Mandate creation is when a customer blocks an amount in the bank account for an IPO application. And, mandate execution is when the customer has been allotted shares for which the funds are debited.

The country’s largest lender State Bank of India (SBI) received the maximum mandate creation requests of 1.9 million, followed by HDFC Bank with 1.3 million, ICICI Bank with 930,423, Bank of Baroda with 636,907, and Axis Bank with 503,810.

In June, five companies launched IPOs, cumulatively raising Rs 9,923 crore and in July six companies tapped the market via IPOs, raising Rs 14,629 crore.