Paytm Money, the leading digital brokerage platform on Monday announced the launch of an innovative feature that allows users to apply for initial share-sales before the actual IPO opening in the markets.
The move is expected to significantly increase the participation of retail users in the initial public offer (IPO) through the process.
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 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 the 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.
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, the digital brokerage said in a statement.
How Paytm pre-Open IPO application works:
- User can 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 will be notified of the application status throughout the IPO booking journey.
- Users can complete IPO applications with a single click, apply via the shareholder category, and also track live IPO subscription numbers