Paytm Money, the wholly-owned subsidiary of Paytm, will allow users to invest in upcoming initial public offerings (IPOs) in the country, the company said on Sunday. This facility will benefit retail investors as they will be able to seamlessly join the growth story of rapidly expanding companies, Paytm added. The IPO service will be available on both, Paytm website and Paytm Money app.
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."
The Paytm interface will allow investors to apply for IPOs through their UPI IDs, linked to bank accounts. Users would be able to change, cancel and resubmit their bids. They would also be equipped to track upcoming IPOs, view company details, download prospectus and check performance of past primary market offerings.
Paytm Money is also planning to launch IPO funding, derivatives trading, margin finance and other services in the near future.
A total of 12 IPOs have raised Rs 24,973 crore from March to November this year, with SBI Cards, Mazagaon Dock, Rossari Biotech, Happiest Minds and CAMS being among the most successful IPO success stories of the year.
Paytm Money's competitor Zerodha started its IPO service in August 2019 and it is already one of the largest digital brokers today, going by the number of IPO applications.
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