Sustainability and IPO Performance: Evidence from Indian Markets
Date Issued
2026-01
Author(s)
Ghorui, Satavisha
Alliance University, Asia Pacific Bioinformatics Network (APBioNet), BioNome, Bioinformatics Club for Experimenting Scientists (BioCluES), Bioinformatics Institute of India, Bulls & Bears Advisory, Centre for Molecular Biology Research (CMBR), International Centre for Culture and Education (IntCCE), International Society for Computational Biology, IonCure Tech Pvt. Ltd., Jain University, Kannan Animal Welfare (KAW), Solera Life Sciences Pvt. Ltd., Sree Balaji Medical College and Hospital (SBMCH), Techno India University
Abstract
Between 2020 and 2025, the Indian capital market saw a big rise in Initial Public Offerings (IPOs), mostly
from technology, renewable energy, and consumer-focused companies. Sustainable finance has become very
popular around the world, and more and more investors are using Environmental, Social, and Governance
(ESG) criteria to make their investment decisions. Research from developed markets indicates that robust ESG
disclosures can elevate firm valuation, mitigate information asymmetry, and enhance post-listing performance.
However, empirical evidence from India is still limited and inconsistent. Even though regulators are paying
more attention to sustainability, especially through SEBI's Business Responsibility and Sustainability
Reporting (BRSR) framework, and green finance initiatives are growing quickly, the question remains: Does
sustainability affect IPO performance in India?
This study seeks to fill this research void by analysing the correlation between ESG disclosures and IPO
performance in Indian companies from 2020 to 2025. The analysis contrasts ESG-positive and ESG-negative
IPOs across multiple sectors, employing t-tests and regression models to assess their under-pricing behaviour
and aftermarket returns over six-month and twelve-month intervals.
The next chapter looks at existing academic research to give a theoretical and empirical background for
understanding how ESG practices are linked to IPO performance in both Indian and global markets.
from technology, renewable energy, and consumer-focused companies. Sustainable finance has become very
popular around the world, and more and more investors are using Environmental, Social, and Governance
(ESG) criteria to make their investment decisions. Research from developed markets indicates that robust ESG
disclosures can elevate firm valuation, mitigate information asymmetry, and enhance post-listing performance.
However, empirical evidence from India is still limited and inconsistent. Even though regulators are paying
more attention to sustainability, especially through SEBI's Business Responsibility and Sustainability
Reporting (BRSR) framework, and green finance initiatives are growing quickly, the question remains: Does
sustainability affect IPO performance in India?
This study seeks to fill this research void by analysing the correlation between ESG disclosures and IPO
performance in Indian companies from 2020 to 2025. The analysis contrasts ESG-positive and ESG-negative
IPOs across multiple sectors, employing t-tests and regression models to assess their under-pricing behaviour
and aftermarket returns over six-month and twelve-month intervals.
The next chapter looks at existing academic research to give a theoretical and empirical background for
understanding how ESG practices are linked to IPO performance in both Indian and global markets.
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