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Paytm Money to offer Pre-Open IPO Applications

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Mumbai: Paytm Money, one of the leading digital brokerage platforms in the country, today announced the launch of an innovative feature which allows users to apply for IPOs before the actual IPO Opening in the markets. Paytm Money is the first digital broker in India to offer this functionality, and expects this to significantly increase the participation of retail users in IPOs via its platform.

The conventional application process for IPOs was designed around timings, and till date, users are able to apply for an IPO only during select market hours over a window of 3 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 “Pre-IPO Open application” feature was specifically designed to make the lives of such users better.

A user can now place an IPO order 24×7 on days when the “pre-Open IPO Application” Feature is enabled. 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 her application status throughout the journey, to ensure a seamless experience. Zomato is the first IPO on Paytm Money launched with this feature, and thousands of applicants on the platform have already placed their orders over the last 2 days.

There is also the issue of congestion in servers/networks experienced by some market participants during popular IPOs, driven by high demand during a short time span. 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.

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