Trade Smart online is a Mumbai based discount broker. It is a subsidiary of VNS Finance & Capital Services Ltd. The company offers trading services in equity, commodities, currency, and derivatives etc., to retail customers.
Trade Smart Online leverages technology to offer its various services. It is a complete online brokerage company that enables its customers to trade via personal computers and mobile phones.
IPO is the process through which a company offers its shares to the general public for the first time and gets listed on the stock exchange. The company sells its shares to raise funds by inviting institutional and retail investors to invest in the company and become shareholders.
Both private and government companies have to take the IPO route to sell its stocks for the first time and raise funds to finance its various business objectives like repayment of debts, execute expansion plans or for general corporate purposes.
Based on pricing, IPOs are of two types: Book Built Issue and Fixed Price Issue.
In the Book Built Issue, the company fixes a price range and the investors have to bid within that price range. The actual price of the share is fixed at the time of allocation and shares are allocated accordingly.
In the fixed price issue, the company fixes the price and there's no bidding involved. The allocation is done based on a formula and lottery system (if the need arises due to overbidding).
IPOs have a bidding window wherein investors can bid. The shares are available in lots as decide by the company. Each investor has to bid for at least 1 lot.
IPOs have reservation or quota for each type of investors as Retail Individual Investors (RIIs), Non-Institutional Investors (NIIs) and Qualified Institutional Buyers (QIBs) in the ratio of 35: 15: 50 respectively. Some companies offer a discount to retail investors.
On allocation, the shares are credited in your Demat account and will be eligible for trading from the listing day.
Trade Smart Online doesn't offer IPO application services to its customers. Trade Smart Online customers, who wish to apply for an IPO, can do so through 3 ways:
The application money will be blocked in your account after the application. So please ensure that you have sufficient funds in your account.
The blocked money will be debited from your account if you are allocated shares else it will be released after the allotment process. The blocked money will earn interest as per the bank's policy.
No, you can not apply in IPO using the Trade Smart Online trading account. However, you can use the net banking services of your bank and get the shares, if allocated, credited to the Trade Smart Online's Demat account.
Trade Smart Online is an online discount broker that runs on a low margin business model and leverages technology for trading operations. They offer low brokerage services, at times 60% to 90% lesser than traditional brokers, by cutting down on expenses on branches, human resources and licenses etc.
To offer IPO services, you need to have a license and manpower. The commission on IPOs is small and the expenses are high making it infeasible for discount brokers.
Not only Trade Smart Online, many other discount brokers like Zerodha, Fyers, and Upstox etc., don't offer IPO services.
IPOs are available in lots. A lot is the minimum number of shares you need to bid for during the application process. It is decided by the company as per the guidelines set by SEBI.
Your shares, allocated through an IPO, will be eligible for trading from the listing day. A significant number of investors sell their shares on listing day if the stock gets listed at a price higher than the application price.
To apply for an IPO, you must:
Banks don't charge any fee for IPO applications. You just need to have the application amount, depending on the number of lots, you wish to buy.
No, 'SINE' app doesn't offer online IPO.
No, they don't offer IPO services to NRIs.
Information about Trade Smart Online Initial Public Offer, Trade Smart Online IPO, Trade Smart Online Allotment Status, Trade Smart Online Applciation Status, Trade Smart Online ASBA, Trade Smart Online Apply IPO andTrade Smart Online Demat.
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