India’s Paytm Money now facilitates investments in IPOs

By Edil Corneille

Noida-based Paytm announced today that its wholly-owned subsidiary Paytm Money now facilitates investments in Initial Public Offers (IPOs) in India. This launch is expected to benefit retail investors with wealth creation opportunities.

Paytm Money has made the process of the IPO application completely digital and it said to be simple for retail investors across the country to apply for IPOs. The company, on its website, mentioned that it will continue to innovate and add new tech-savvy features for an enhanced user experience.

The platform is said to have enabled investors to instantly apply for all the latest IPOs via UPI ID, linked to their bank accounts to quickly complete the IPO application process. The company is leveraging the convenience of UPI infrastructure to offer a faster turnaround time reduced to 3–4 days for the completion of the entire process.

Paytm Money is said to offer a seamless interface to make changes, cancel or reapply the bidding application within the IPO window. It is equipped with features enabling investors to track upcoming IPOs, view the company’s history and other details, download the prospectus, and also check the performance of past IPOs. This service is available on both the Paytm Money app and the website.

Varun Sridhar, CEO — Paytm Money said, “The Indian start-up ecosystem has a growing appetite for entering the capital market, now more companies want to raise capital from a broader set of investors with a public listing. Likewise, investors are also increasingly willing to diversify their portfolio. This presents a big opportunity and we intend to make the process more accessible to our fellow citizens. In near future, we plan to launch IPO funding, derivatives trading, margin finance and a host of other value-adding features to make investing seamless and convenient. This is aligned with our mission to drive financial inclusion across the country.”

Paytm mentioned that in the period March-November 2020, India’s stock exchanges (both NSE and BSE combined) witnessed 12 IPOs and raised proceeds worth INR 249.73 billion in total. Some of the successful IPOs of 2020 were SBI Cards, Mazagaon Dock, Rossari Biotech, Happiest Minds, and CAMS among others. Within these, Happiest Minds and Rossari Biotech were oversubscribed by 150.98x and 79.37x and have delivered a listing day return of 111 per cent and 77 per cent respectively as per NSE’s data.