This comes ahead of the LIC IPO, which is set to open on May 4.
The launch of the HNI investment service is in line with a Securities and Exchange Board of India (Sebi) circular dated April 5, 2022, which allowed investments of up to Rs 5 lakh per user through the Unified Payments Interface (UPI), from the previous limit of Rs 2 lakh. This change applies to all IPOs after May 1, 2022.
Last July, Paytm Money had
launched a pre-initial IPO application feature on its platform, which allowed retail investors to apply for an IPO before its official launch.
“This new service has been launched in view of the growing appetite for high-value IPOs among Indian investors and comes at an ideal time, right ahead of the much-awaited LIC IPO,” said Varun Sridhar, chief executive of Paytm Money.
“Our aim is to enable new investors in their wealth management journey and so ahead of LIC IPO, we are offering free demat accounts for a lifetime,” Sridhar added.
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The pre-IPO applications will be recorded on Paytm Money’s system and sent to the exchange for processing whenever the IPO opens, the company said in a statement.
Paytm Money has total assets under management (AUM) of Rs 11,000 crore. It said it processed over 16.2 million mutual fund transactions and over 31 million equity orders in the past year.
Paytm Money is a wealth management and trading platform that has products like stocks, futures and options (F&O), open application programming interface (API) trading, exchange-traded funds (ETFs), direct mutual funds, wealth community and portfolio management services.
The platform services retail investors and advanced traders across India and says it processes over 100 million transactions in a year.
