Paytm Money users go big on recent IPOs; first time investors’ continue to lead

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Paytm Money, one of the leading digital brokerage platforms in the country, offered Devyani International, Exxaro Tiles, Windlas Biotech, and Krsnaa Diagnostics IPO from Aug 4th to 6th on its platform. These IPOs have received a strong response from the investing community and based on a study of investors who successfully completed IPO applications for these 4 IPOs, Paytm Money has identified some noteworthy trends.

First time investors continue to dominate the markets: Interest from first time investors for IPOs has been rising consistently, with ~24% of applicants in these IPOs on Paytm Money being new to industry investors; This is higher than Zomato IPO on Paytm Money, which saw ~22% new to industry applicants.

Brand affinity could be associated with Investment by Youth: Amongst the 4 IPOs, Devyani International, which runs brands like Pizza Hut, KFC, and Costa Coffee saw the highest share of applications from Paytm Money investors under 25.

Young Investors driving volumes, but Avg. Invested Amount seen to be positively correlated with age: Even though younger audiences commanded a higher total share of applications on Paytm Money Platform for the 4 IPOs last week (55%+ applications from individuals under 30 years of age), the avg. ticket size for an investor aged 30+ was 30% higher than an investor below 30 years of age.

Significant IPO activity seen by regular investors as well: More than 45% of pre-existing IPO investors on Paytm Money platform participated in one or more IPO last week.

Tier-I cities drive major demand, but participation of smaller towns on the rise as well: Top States driving applications were Gujarat, NCR, Maharashtra, UP, and Rajasthan, and the leading cities were Ahmedabad, Jaipur, Delhi, Surat, and Hyderabad; Participation from smaller cities and towns has also been rising, with customers from 500+ different locations participating in the 4 IPOs offered on Paytm Money last week Women Participation Consistently Rising: Women participation in IPOs has seen a consistent rising trend over the last month, with 15% women applicants in these IPOs on Paytm Money; This is 40%+ higher than seen historically for IPO applications on Paytm Money App

Varun Sridhar, CEO of Paytm Money said, “The IPO fervour continues with young, millennial investors taking the lead on applications on Paytm Money. With our mission to drive wealth management for Indians, we hope to continue to make the lives of investors easier and bring more convenience for them.”

Recently, Paytm Money had announced the launch of an innovative feature that allows users to apply for IPOs before the actual IPO opening in the markets. Paytm Money is the first digital broker in India to offer this functionality. The “Pre-IPO Open application” feature was specifically designed to make the lives of users better, where the order is recorded on Paytm Money’s system and sent to the exchange for processing whenever the IPO opens.