Digital financial services platform Paytm on Monday announced that the company’s fully owned subsidiary Paytm Money has started facilitating investments in Initial Public Offers (IPO) in India.
A statement from the company said that the launch would be beneficial to retail investors with wealth creation opportunities.
The IPO application has been made fully digital to ensure simple usage for the retail investors in applying for IPOs, with new features to enhance user experience expected to be added.
Unified Payments Interface (UPI) ID associated with respective bank accounts could be used by the investors to make payment for the IPO application process. With this enabled, the company expects the ease of usage of the UPI infrastructure would make the whole process complete in a time span of three to four days, the statement said.
Changes to the bidding application, cancelling or reapplying could also be done within the IPO window via the platform’s interface. Both Paytm Money application and website offers features to track upcoming IPOs, view company history & details, download prospectus, and also check the performance of past IPOs, the statement added.
Regarding the announcement, the chief executive officer of Paytm Money Varun Sridhar 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.”
Between March and November 2020, India’s stock exchanges, NSE and BSE, witnessed 12 IPOs and raised proceeds worth Rs 24,973 crores, the statement mentioned.
Located in Bengaluru, Paytm Money is a wholly-owned subsidiary of One97 Communications, that also owns Paytm.