One97 Communications Limited (OCL) that owns the brand Paytm, today announced that its wholly-owned subsidiary Paytm Money Limited (PML) has launched the pre-open IPO feature for the upcoming LIC IPO. The company is also offering free demat accounts for new investors.
Investors waiting to subscribe to the IPO can apply for it through Paytm Money. They can even do it now — even before the IPO opens for subscription, using Paytm Money’s Pre-Open IPO application feature, it said in a press statement.
The issue will be open to subscription for the general public from May 4-9. The 5-day subscription period is unique as this period tends to be three days for most IPOs. The price band for the IPO is set at Rs 902-Rs 949. The government is selling 3.5 percent of its stake in LIC for Rs 21,000 crore, valuing the insurance giant at Rs 6 lakh crore.
Varun Sridhar, CEO, Paytm Money said, “With Paytm Money’s pre-open IPO feature, users can apply for India’s largest insurer’s market debut at their own convenience. This service will be especially useful for users who are not full-time investors and might not be able to get the time to subscribe to the IPO during the application timings.”
How to apply through the pre-open IPO feature
While the IPO is open for subscription on May 4, and the official application timings are 10 AM to 5 PM, Paytm Money has enabled the pre-open feature for the LIC IPO. With this, users can subscribe to this IPO right away. The pre-open application will be recorded on Paytm Money’s system and sent to the exchange for processing whenever the IPO opens.
Follow these steps to apply right now:
1. Go to the “Invest in IPO” option on Paytm Money, you will be able to see the IPO with a Pre-Open tab.
2. Select LIC IPO
3. In the respective IPO screen, you will be able to see the “Apply Now” button with the disclaimer that an application submitted in the pre-open stage can be canceled or modified only when it is sent to exchange when IPO opens, select apply now
4. The Apply for IPO page will open. Here you can modify the lot size, add up to 3 bids and modify the price. Post that UPI ID can be filled and apply button needs to be selected
5. After tapping “Apply” you will get a screen stating that IPO is currently pre-open and application will be sent to exchange after IPO start date.
How to apply for the IPO when subscription opens
The process to apply for the LIC IPO is quite straightforward through the Paytm Money app.
Go to the IPO section on Paytm Money’s home screen.
The LIC IPO option will be available in the ‘Current & Upcoming’ tab within IPOs.
Once you click on the option you will see the ‘Apply now’ button which will take you to the bid page. On this page, you can update the price and quantity for your application.
In the ‘Add UPI Details’ section, update your UPI ID and click on ‘Apply’.’
How to apply through the Paytm app
Users can also apply for the IPO via the Paytm app.
Within the ‘My Paytm’ section of the Paytm app, users will be able to find ‘Paytm Money’ option on the right.
Existing users can click that option and start their application journey from there as described above.
Users not registered with Paytm Money can get KYC verified in a few easy steps and proceed to the IPO application step
How to open a free Demat Account with Paytm Money
Paytm Money Demat account can be opened in a few easy steps within a completely online journey:
Download Paytm Money App
Submit your PAN card details
Submit your address proof in the form of Aadhar details
Submit your bank details for adding and withdrawing funds from the Demat account
Provide an e-signature for the online account opening form
After submitting all these necessary details, Paytm Money’s KYC team will take care of further proceedings to open a Demat account. Once the KYC process is done and your Demat account is in place, you can officially start investing.
