Paytm Money, the leading brokerage platform in the country on Monday unveiled a new feature that allows the investors to apply for initial public offerings (IPO) before the issue opens in the market. At present, the investors can apply for an IPO only during select market hours when it opens for a three-day period. A lot of investors, especially who do not trade actively, miss the opportunity to invest in an IPO due to stringent timing, network issues and server glitches. Paytm’s new ‘pre-IPO open application’ is aimed at solving this problem. “A large proportion of the investing community does not trade actively, and is likely to be busy during market hours, missing out on some of these IPOs. This is particularly true in case of millennials and young investors. The ‘pre-IPO open application’ feature was specifically designed to make the lives of such users better," the company said in a statement.
How Paytm pre-Open IPO application works:
Now, users can invest in an IPO 24X7 via ‘pre-open IPO application’ feature on Paytm Money. Once an investor places an order, it gets recorded on Paytm Money’s system. At the next round, the brokerage platform sends the request to the exchange when the IPO opens. The user will get notification of every steps throughout the IPO-booking journey. The upcoming IPO worth of popular food delivery giant Zomato is already available on Paytm Money. Thousands of customers already placed their orders for 9,375 crore-IPO in the last two days, the company said. It must be mentioned that Paytm Money is the first digital broker in India to offer this functionality.
“Interest in IPOs has surged over the last couple of months, and we have seen cases where users have missed out from applying because of issues like tight schedules during market hours, and demand led processing delays in the markets. We wanted to make the lives of our users easier and ensure that they don’t miss out on good opportunities,” said Varun Sridhar, chief executive of Paytm Money.
“As this feature gains traction, it might be possible to spread out the pre-open IPO applications evenly during the market hours, reducing load on exchanges and payment gateways, and ensuring a better experience for broad market participants," the company said.
Paytm Money has also launched a set of other advanced features in a bid to offer the most comprehensive IPO application experience to its users. “Users on Paytm Money can now complete IPO applications with a single click, apply via the shareholder category, and also track live IPO subscription numbers," the company added.
India’s most popular food aggregator business is all set to launch its much-awaited on July 14 to raise ₹9,375 crore. It has set the offer price for these public shares at ₹72-76 apiece. Investors can place their bid with a minimum of 1 lot of 195 equity shares.