Corporate Governance and IPO Subscription Levels: Evidence from Indian Startups

The modernization of corporate governance has become a cornerstone for ensuring transparency, investor confidence, and sustainable growth in capital markets. In India’s evolving startup ecosystem, the role of governance practices has gained heightened importance as young, innovation-driven firms increasingly access public markets through initial public offerings (IPOs). This study examines how modern corporate governance mechanisms such as board independence, disclosure quality, venture capital and underwriter certification, and intellectual capital reporting shape the subscription levels of startup IPOs in India. Drawing on signaling theory, asymmetric information models, and behavioral finance perspectives, the research develops an integrated framework to assess both financial and non-financial determinants of investor participation. Using a mixed-method approach that combines empirical analysis of post-2016 startup IPOs with qualitative insights from market practitioners, the study provides evidence on how governance modernization influences demand across investor categories (retail, institutional, and high-net-worth individuals). The findings are expected to contribute theoretically by extending IPO and governance literature into the startup financing context of an emerging economy, while also offering practical guidance for entrepreneurs, underwriters, and regulators. The study seeks to align corporate governance modernization with the broader agenda of sustainable capital market development in India.