Investing in Initial Public Offerings (IPOs) is a high-risk, high-return game. If you had subscribed to the mega IPO of Reliance Power, which raised ₹11,700 crore in 2008, you would be staring at a loss of 82 per cent now. On the other hand, if you had subscribed to offers made by Page Industries or YES Bank, you would have gained over 2,000 per cent.
But the probability of an investor making money in an IPO has markedly increased over the last four years, largely due to regulatory action.
A BusinessLine analysis of the performance of IPOs since 2004 reveals that investors have lost less in the primary market after 2011.
