Ahead of LIC IPO, Paytm Money opens bids of up to ₹5 lakh through UPI

• The launch of this new service is in alignment with SEBI circular dated April 5, 2022.
• Patym Money claims to be the first discount broker to implement this feature.
• The company claims to have a total asset under management (AUM) of ₹11,000 crore.

Wealth management platform Paytm Money — which is run by digital payments giant One 97 Communications — on Friday announced a new feature that would allow high networth individuals (HNIs) to place bets of upto ₹5 lakh for upcoming initial public offering (IPO) that too through unified payments interface (UPI).

Notably, the launch of this new service is in alignment with Securities and Exchange Board of India (SEBI) circular dated April 5, 2022, which mandated investments upto ₹5 lakh through UPI or all IPOs post first of May. Previously, the limit was set up at ₹2 lakh per investor.

Patym Money would be the first discount broker to implement this feature and expand the investment limit, the company has claimed.

The development comes only a week before LIC goes for India’s biggest IPO worth ₹21,000 crore. The shares of LIC will open for subscription on May 4 and close for bidding on May 9. The shares will be allotted on May 12.

“We are the super app of wealth management, giving users the power of investing. The addition of the HNI investor category will allow retail investors to place higher IPO bids through NPCI UPI in a convenient and seamless manner. 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,” Varun Sridhar, chief executive officer of Paytm Money, said.

Paytm Money currently offers several wealth management products lieke stocks, future and options (F&O), direct mutual funds, wealth community, portfolio management services and much more. The company claims to have 8.9 lakh organic trading accounts as well as 9 million registered direct mutual fund investors.

The company claims to have a total asset under management (AUM) of ₹11,000 crore.

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