IPO Speical: Ekkay Magic, a Baroda-based IT services company that focuses on software development and related services, has launched a service that allows investors to apply for an IPO through SMS.

“SMS IPO”, a service that can be offered by any broker, allows registered users to apply for an initial public offering by sending a short message from any mobile handset.

“The service scores over others in reach, ease of applying and reduction of cost with a high level of efficiency in terms of deliverables, timelines, security and reporting,” according to Joiyesh Sampat, Head of Business Operations at Ekkay Magic. “The solution not only assists the investor/subscriber to apply for an IPO using the cellphone, but also allows him to alter/modify or cancel the bids at later stage of the issue but before the closure of the same.”

SMS IPO informs its registered users about the latest IPOs and related details through an SMS.

Investors can reply to the SMS in an “already predefined format” when the issue opens. These details are then recorded at the broker’s end. The customer is identified through his or her cellphone number. The transaction ID is included in the SMS.

The SMS IPO will save the investors trips to their brokerages for participation in public issues as they can apply from their mobile phones, and they are also freed from the initial documentation process, said a company presentation.

“With the launch of SMS IPO, not only does investors reach increases but the investor base will also swell. This will also reduce IPO management costs of companies who approach the primary market to meet their funding plans,” said Sampat.