Red herring prospectus
Also called: RHP, DRHP, draft red herring prospectus, offer document
The offer document for an IPO, filed before the final price is fixed, setting out the business, risks, financials, the use of proceeds and who is selling.
A draft is filed with SEBI first, then the red herring prospectus with the price band before the issue opens. The risk factors, objects of the issue, offer structure, basis for the issue price, litigation and related-party sections are the most useful parts for investors.
Learn more in these lessons
- Evaluating an IPOHow do you judge whether an IPO is worth investing in?
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