SMC Global IPO Review (Apply Steps, UPI and Allotment Status)

SMC Global is a full-service broker that offers a complete range of products and services to its customers. In addition to broking, the company offers other services like IPOs, Mutual Funds, Research etc.

SMC Global customers can use the desktop, mobile and web versions of the platforms to trade in their desired securities at the desired exchange. The company charges a percentage of the trade value as brokerage which is competitive in the industry.

Key Facts about SMC Global

• More than 2 decades of experience in the broking industry
• Member of SEBI, BSE, NSE, MCX, NCDEX, MCX-SX, CDSL and NSDL
• 3000+ employees and 2500+ sub-brokers
• 50+ branches across India
• Presence in 500+ cities

Initial Public Offer (IPOs)

An Initial Public Offer (IPO) is the process wherein a privately held company goes public and offers its shares for the first time to investors. The company invites institutional and retail investors to participate in the IPO and become a shareholder.

There are 3 categories of investors who can participate in an IPO- Qualified Institutional Buyers (QIB), Non-institutional investors (NII) and Retail Individual Investors (RIIs). RIIs who invest above Rs 2 lakh are called HNI investors. There is an allocation reservation for each investor category as QIB- 50%, NII- 15% and RII-35%. Some company also reserve a part of the shares on offers for its employees.

IPOs have a bidding window or period during which investors need to apply for it. IPO application can be done online as well offline. The bidding window is mandated by SEBI rules for at least to be of 3 days.

IPO shares are available in lots. The lot is defined depending on the minimum application amount for each investor category and the price of one share. According to the SEBI guidelines, the minimum application amount for retail investors in mainline IPO is between Rs.10,000 and Rs.15,000. In SME IPOs, the minimum application amount is Rs 2 lakh.

There are two types of IPOs based on its price mechanism- Fixed Price Issue and Book Built Issue. In the Fixed Price Issue, the price of a share of the company is announced before the bidding process while in a Book Built Issue, a price range is announced and investors need to bid within the price range. The actual price of the share is announced on the allotment and accordingly, shares are allotted to eligible investors.

A Demat account is necessary to apply for an IPO. The shares, if allotted, are credit into the Demat account.

The shares allotted in an IPO becomes eligible for trading from the listing day of the company. Investors can trade in the shares like other stocks of the company from the listing day.

Apply in an IPO - SMC Global Securities

SMC Global offers IPO application services to its customers. The company also offers IPO financing options. SMC customers can avail loans up to Rs 2 lakhs to finance their IPO application.

You would need your Demat details while applying for IPO with SMC.

The allocated shares from the IPO will be credited to your SMC Demat account. After the listing of the company, you can sell the shares using the SMC trading account.

Alternatively, you can also apply for an IPO online using your bank account and SMC Demat account. The process is easy and only takes a few minutes.

Steps to Apply in an IPO using net banking ASBA

To apply for an IPO's using net-banking ASBA offered by your bank, you need to take the following steps-

1. Log in to your net banking account.
2. Visit the 'Invest in IPO' section
3. Some banks may require you to register as an applicant for the first time
4. Go to the list of IPOs and select the IPO you wish to apply for.
5. Provide your demat account details
6. Enter IPO details like price, number of lots etc
7. Confirm and submit the application

The application amount will be blocked in your account and will only be debited when shares are allotted. It will be released if shares are not allotted. The blocked money earns interest for the period.

Frequently Asked Questions

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Information on this page was last updated on Thursday, November 23, 2023