InvestorQ : Is it true that Paytm is planning a very major foray into IPO selling in India?
Khushi Patel made post

Is it true that Paytm is planning a very major foray into IPO selling in India?

Dhwani Mehta answered.
2 years ago

With the online broking industry veering towards the low-cost model, Paytm has already made a foray into online broking to tap the bottom of the pyramid as they call it. However, there are some interesting projections they are making on the IPO selling front.

Now, Paytm Money looks to make a splash in IPO marketing in a really big way. Paytm users will now be in a position to put in applications for investment in IPOs via the Paytm platform. So all that you need now is to load your Paytm app and use your mobile app to apply for IPOs and get allotments. That surely sounds simple.

Paytm added that it intended to capture 8-10% share of total IPO applications in the first year. Of course, they are not talking about the amount but only the number of applications so the focus will be on very small applications only. But even on a number of forms basis, 8-10% is a very ambitious and huge figure to begin with.

Paytm has simplified the process allowing the IPO application via UPI ID linked to their bank accounts. In fact, IPO applicants can use their existing Paytm UPI id or any other UPI linked to a bank account and apply for the IPO.

Paytm sees a huge opportunity both ways. Firstly, it allows small investors even in rural areas and the hinterland to participate in IPOs in a seamless manner. Paytm feels that apart from risk-taking investors, even the Indian start-up ecosystem has the appetite for raising capital through IPOs.

Of course, this will be one of the big plans for Paytm Money in the coming year. Paytm Money also plans to offer derivatives trading, margin finance and other services to enhance its financial offerings. But IPOs are where they plan to make a real splash.