Remitter banks in India received over 19 lakh or 1.95 million IPO applications or mandates created that have chosen UPI as the payment option while filling the application in June, data released by the National Payments Corporation of India shows.
UPI As The Payment Option For UPI Mandates
Mandate creation, according to NPCI, is a transaction in which a consumer has successfully produced a block of money in their bank account for an IPO application.
In June, State Bank of India was one of the top five remitter banks, with 4,86,555 IPO applications accepted and an approval rate of 84.63 percent through UPI. ICICI, Bank of Baroda, and Axis Bank came in second, third, and fourth, respectively.
NPCI Data Records
This is the first time NPCI has made this information public since SEBI approved IPO application requests through UPI in 2019. The approval was given to shorten the time between the closing of an IPO and the security’s listing from six to three working days.
The NPCI data further showed that out of 1.95 million UPI IPO mandates, 3,30,478 or 3.3 lakh have been executed or processed by the remitter banks in the last month. This essentially means that close to 17% of applicants who applied for an IPO have been allotted shares for which the funds were debited from their account.
And with so many blockbuster IPOs lined up this year, investor interest is all set to go up. According to NSE data, the total number of retail investors in June 2021 stood at 211,95,583 – a 41.30% jump from June 2020.
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