Greening the Primary Market: ESG Disclosures and Pricing Dynamics of Indian IPOs
Corporate Social Responsibility and Environmental Management
Published online on May 04, 2026
Abstract
["Corporate Social Responsibility and Environmental Management, Volume 33, Issue 3, Page 4055-4069, May 2026. ", "\nABSTRACT\nThis study explores the relationship between ESG reporting and Initial Public Offering (IPO) performance in the context of Indian markets. The research examines how the disclosure of ESG information in IPO prospectuses affects the initial performance of newly listed companies. The prospectuses of 344 companies listed during 2017–2024 are examined using Python text analysis modules. The study analyses the correlation between ESG disclosures and post‐IPO stock price performance, assessing whether companies with better ESG scores exhibit more significant listing gains. This study's results indicate a significant positive relationship between ESG scores and the listing performance of IPOs. The persistent effect of ESG disclosures up to 30 days after listing is also examined. Investors show more affinity towards companies having better ESG disclosures and attitudes. The findings of this study hold implications for policymakers, investors, and market participants seeking to better understand the role of ESG factors in the IPO valuation process and their impact on capital market development in India.\n"]