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10.4What is a DRHP?

1What is it?

The Draft Red Herring Prospectus (DRHP) is the first detailed document a company files with SEBI before an IPO.

2Why does it exist?

It discloses the business, financials, risks, promoters, legal cases and plans, so investors and SEBI can review them.

3Practical use

DRHPs are public on SEBI’s website. They usually don’t include the final price.

4Quick revision
  • First filing with SEBI.
  • Detailed disclosures.
  • No final price.
5Knowledge check
Q1. What does DRHP stand for?Show answer

Draft Red Herring Prospectus.

Q2. Where is it published?Show answer

SEBI’s website (also the exchanges and lead managers).

Q3. Does it have the final price?Show answer

No.

More in Level 10: IPO: Initial Public Offering