Paytm Money has launched a feature allowing users to apply for the upcoming Zomato IPO even before the subscription opens.
Paytm Money has launched a feature allowing users to apply for the upcoming Zomato IPO even before the subscription opens. Zomato is the first public issue on its platform to witness the new feature, using which, investors can apply for the upcoming IPO on a 24×7 basis. The order would be recorded on Paytm Money’s system, and would be sent to the exchange for processing whenever the IPO opens. The users would be notified of their application status throughout the journey.
Paytm expects this feature to significantly increase the participation of retail users in IPOs via its platform. Paytm Money explained that a large proportion of the investing community does not trade actively and is busy during market hours, missing out on some of the IPOs. Paytm Money informed that thousands of applicants on its platform have already placed their orders over the last 2 days.
Paytm Money, in a press note, explained that the conventional application process for IPOs was designed around timings. The users can apply for an IPO only during select market hours over a window of 3 days. During popular IPOs, many market participants face the issue of congestion in servers/networks due to high demand during a short time span. “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,” said Varun Sridhar, CEO of Paytm Money.
How to submit a pre-open Zomato IPO order
In order to submit a pre-open Zomato IPO order, users will have to check for ‘Pre-Open’ tags on the IPO page and open the IPO details page. Pre-IPO orders can be canceled or modified only after the IPO start date. Moreover, users can check subscription status numbers for different categories — retail investors, qualified institutional buyers (QIB), non-institutional investors (NII) and employees — from the app. Among other features, users on Paytm Money can complete IPO applications with a single click, apply through the shareholder category, and track live IPO subscription numbers. The company has developed functionality for UPI handle, where users would not have to enter details each time they apply for the IPO. In case, the user has shares of the parent company, Paytm’s new feature will allow to apply via shareholder category.
Zomato IPO opens July 14
Zomato’s Rs 9,375-crore is scheduled to open for subscription on Wednesday, July 14, at the price band of Rs 72-76 per share. The issue will have 75 per cent reserved for qualified institutional buyers (QIBs) and 15 per cent will be reserved for non-institutional investors (NIIs). The remaining 10 per cent of the issue will be available for retail investors. The anchor portion is likely to open on Tuesday, July 13, 2021, one working day prior to the opening date for the public offer.