Following LIC's IPO, a maximum of 45 lakh mandates were issued through UPI in May

MUMBAI: The initial public offerings (IPOs) were given 5 lakh mandates in May, which was the highest mandate for IPOs in 206 through the Unified Payment Interface (UPI), according to figures from the National Payments Corporation of India (NPCI).

Out of 3 lakh mandates given, 3 lakh mandates were complied with. In May, Life Insurance Corporation of India (LIC) received about 3 lakh retail applications for a Rs 21,000 crore IPO.

This is the first time such a large number of applications have been received for a domestic IPO. Earlier in 2009, 4 lakh applications were received for Reliance Power.

In May, eight companies, including LIC, raised a total of Rs 200 crore through IPOs. Which was the second largest amount after the amount raised in November 2021. In November 2012, nine companies, including Paytm, raised a combined Rs 5 crore through public payments.

When applying for an IPO, the mandate is formed when the applicant allows the application amount to be blocked in his bank account. Against this application the mandate is deemed to have been exceeded when the shares are allotted and the amount is debited from the bank account.

Earlier, 3.50 lakh mandates were issued for IPOs in July last year, but only 2.50 lakh were surpassed.

Even if there is a global recession in terms of IPO or primary market, the data shows that India's IPO market has been booming in the current year.

In the first five months of 2009, 12 companies raised Rs 21,000 crore from the country's primary market, an increase of 30 per cent year-on-year, according to a research report. In the first five months of 2021, 12 companies raised Rs 2,000 crore.