Unveiling the Impact of COVID-19 Fear on the Success of Indian IPOs: A Comprehensive Examination

In 2020, amidst significant volatility, 16 companies in India launched their Initial Public Offerings (IPOs). Despite market uncertainty, most IPOs performed well and generated favourable returns for shareholders. However, the impact of the COVID-19 pandemic, reflected in the surge of cases and fatalities, influenced investor sentiment and market performance. To quantify this effect, empirical analysis is required to examine whether fear played a role in IPO performance when correlated with listing day returns. This research aims to investigate the impact of COVID-19-induced fear on the immediate profitability of Initial Offerings in India from early 2020 to late 2021. Using the Short-run Performance (Adjusted by Market) (SRPm) methodology and baseline regression techniques, the study seeks to uncover how investor apprehension towards COVID-19 influenced IPO listing returns while controlling for firm-level variables and industry-fixed effects.