Zomato IPO: 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.
Paytm Money is the broking and financial assets distribution arm of digital payments solutions company Paytm. Under the service, christened ‘Pre-Open IPO Applications’, Paytm Money’s customers can apply in the forthcoming offer for the food delivery company before the actual opening of the IPO on July 14. Currently, investors with demat accounts can apply in an IPO only during the days an offer is live on an exchange platform, and that too during market hours — that is, between 9am and 3.30pm. The closing time could be extended by a few hours if there’s a heavy rush of applications on the last day. Investors cannot apply in an IPO beyond these hours.
Varun Sridhar, CEO of Paytm Money, said in a statement: “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.”
A conventional IPO application process is designed around timings and is seen as restrictive
, as users are able to apply only during select market hours over a window of three days. A large proportion of the investing community does not trade actively, and is likely to miss out on some of these IPOs. This is particularly true of millennials and young investors. The pre-IPO application feature is meant for such investors.
How the Paytm pre-Open IPO application works:
Users can now invest in IPO24X7 through Paytm Money’s “Pre-Open IPO Application” feature. When an investor places an order, it is recorded in Paytm Money’s system. In the next round, when the IPO begins, the intermediary platform will send a request to the exchange. Users will be notified of all steps throughout the IPO booking process. Upcoming IPO equivalents of popular food delivery giant Zomato are already available on Paytm Money. According to the company, thousands of customers have already ordered an IPO of Rs 937.5 billion in the last two days. It should be mentioned that Paytm Money is India’s first digital broker to offer this feature.
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