Paytm Money now allows investors to apply for an IPO before opening, Zomato being the first
Paytm Moneywill allow users to apply for an IPO before the actual IPO opening in the market.
- The company believes that this will attract more millennials and young investors to participate in the IPO.
Zomato’s upcoming IPO is the first one to be launched on this new feature and has attracted thousands of applicants already.
AdvertisementPaytm Money, the wealth management arm of payments firm Paytm, has announced the launch of its latest feature on Monday, July 12, that will allow the users to apply for an initial public offering (IPO) before the actual issue opens in the market. The feature has also been enabled for the upcoming IPO of food delivery firm Zomato.
Paytm Money expects this to significantly increase the participation of retail users in IPOs via its platform. The company, in its press note, explained that the conventional application process for IPOs was designed around timings and date. Users are able to apply for an IPO 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 be busy during market hours, missing out on some of these IPOs. This is particularly true in case of millennials and young investors, the company further added.
A retail investor can plan an IPO order 24x7 on days when pre-open IPO is enabled. The order is recorded in Paytm Money’s feature and sent to the exchange for processing whenever the market is open.
“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,” Varun Sridhar, chief executive of Paytm Money.
Zomato is the first IPO on Paytm Money launched with this feature. The company claims to have registered thousands of orders for it over the last 2 days.
The food aggregator business will float its IPO this week on July 14 to raise ₹9,375 crore ($1.3 billion). 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. At a price of ₹76 per share, one lot can cost up to ₹14,820.
Meanwhile several reports suggest that digital payments giant Paytm is expected to file its IPO this week as well. It has appointed JP Morgan and Goldman Sachs as the merchant bankers for its upcoming IPO.
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