Paytm Money has launched a feature allowing users to apply for initial public offers, including the upcoming Zomato IPO, even before the subscription opens in the markets, in a move the digital broker said is expected to “significantly increase the participation for retail users in IPOs via its platform. “Zomato is the first IPO launched with this feature, it said.
“The ‘Pre-IPO Open application feature was specially 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,” Paytm Money said in a blog.
The digital broker also cited the issue of congestion in serves on networks 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 application evenly during the market hours, reducing load on exchanges and payment gateways, and ensuring a better experience for broad market participants,” it added in the blog.