Losing steam: IPO bets of wealthy investors turn sour in August

Overall, HNIs have profited in 16 out of 27 IPOs in 2021

For much of this year, wealthy investors had made a killing on the initial public offerings (IPOs) that hit the market with some regularity. This month, however, most of their bets have gone awry.

Up until July, 14 of the 19 companies that made their debut on the bourses made money for these investors on day one, after taking into account the financing cost and significant oversubscription. In other words, three out of every four new listings gave the bang for the buck.

In August, the win-loss ratio has reversed, with six of the eight listings so far making losses. Losses in