Making money from leveraged bets on initial offers is difficult

Pricing, oversubscription level, and listing-day gains must all be right for you to make a quick buck

There have been 54 mainboard initial public offerings (IPOs) so far in 2021, of which 30 have gained 10 per cent or more on listing day. The rest have delivered either single-digit gains or made losses on debut. The level of subscription has ranged from 0.15 to 150 times. This variation in outcomes makes IPO investing using borrowed funds a risky proposition for high networth individuals (HNIs).

Short-term loan

The interest cost for IPO funding ranges from 10-14 per cent. This loan is generally taken for seven-eight days. The margin requirement (amount the investor pays out of his pocket) can vary from