PremiumPaytm Money, the wealth management division of One97 Communications Ltd, said it has launched a pre-initial public offering (IPO) open application feature on its platform, allowing retail investors to apply for an IPO before they open in the market. The company said Zomato is the first initial share sale on its platform that will be launched with the new feature.
Paytm Money users can use the feature to place an IPO order anytime through the week. The order is recorded on Paytm Money’s system and sent to the exchange for processing whenever the IPO opens. The user is notified of the application status throughout the journey, the company said.
Paytm Money said that Zomato is the first IPO on its platform that will be launched with this feature, with thousands of applicants having already placed their orders over the past two days.
Paytm Money customers can apply in the IPO before its opening on Wednesday. Investors with demat accounts can apply in an IPO only during the days an offer is live on the platform between market hours.
As Paytm Money has already allowed the customer to apply for the IPO, the orders will be sent to the exchanges once the IPO goes live on Wednesday.
The investors will be asked to authorize their payments after which the application will be uploaded on the exchanges.
“Interest in IPOs has surged over the last couple of months and we have seen cases where users have missed out on applying because of issues such as 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 officer, Paytm Money.
The feature will also solve the congestion in servers and networks caused by high demand experienced by market participants during popular IPOs, Sridhar added.
Never miss a story! Stay connected and informed with Mint. Download our App Now!!