New Delhi: Zomato IPO is all set to hit the market on July 14. The much-awaited initial public offering of the online delivery platform will be opened for subscriptions on Wednesday. Now Paytm Money has launched an innovative feature through which users can apply for initial share-sales before the actual IPO opening in the markets. Zomato IPO is the first initial public offering under this feature.
- 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, as per PTI report.
- Paytm Money’s move is expected to significantly increase the participation of retail users in IPO through the process.
- The traditional application process for IPOs was designed around timings, and till date. Interested investors are allowed to apply for an IPO only during select market hours over a window of three days of subscriptions, the PTI report says.
- However, a large number of interested investors may miss out on some of these IPOs. This is particularly true in case of millennials and young investors.
- Paytm Money’s “Pre-IPO Open application” feature was specifically designed to make the lives of such users better, the PTI report says.
- A user can now place an IPO order 24×7 on days when the “pre-Open IPO Application” feature is enabled, as per the PTI report.
- 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.
- There is also the issue of congestion in servers or 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.
- “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,” Varun Sridhar, CEO of Paytm Money, was quoted as saying by PTI.
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