DRHP (Draft Red Herring Prospectus)

In the event of a book building issue, a DRHP is a preliminary registration document issued by merchant bankers for prospective IPO-making enterprises. It contains all of the information required to launch an initial public offering.

The Draft Red Herring Prospectus (DRHP) or offer document is the document prepared by the merchant banker on behalf of the company want to apply for IPO which will be filled with the SEBI, ROC and stock Exchange. It contains

• Company financials

• Business operations

• Its peers

• Why company want to raise funds

• Its promoters

• Its top management

• How the money will be used

• What type of risks involved