Digital brokerage platform Paytm Money has introduced an innovative feature that 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.
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 his/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 two 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 the load on exchanges and payment gateways, and ensuring a better experience for broad market participants.
Here’s how to pre-apply for IPO through the Paytm Money app:
– Login to your Paytm Money app or website and tap on the IPO icon on the home screen
– Once you reach the IPO dashboard, click on any upcoming IPO
– Click on the “Apply Now” button and pre-apply for the IPO
-Paytm Money will send your application once the IPO opens. You will receive the mandate as soon as the application is sent to exchange.