RHP (Red Herring Prospectus)

Business & Management
#1

A preliminary prospectus filed with the SEBI by a company, generally in connection with the business’s initial public offering , is known as a red herring prospectus. A red herring prospectus provides the majority of the information about the company’s activities and prospects, but it omits critical data about the security offering, such as the price and number of shares offered for sale.

#2

A Red Herring Prospectus, which derives its name from the warning notice in red which must appear on the cover, is a draft prospectus circulated by an entity ahead of a public stock or bond offering. It is circulated prior to approval by the SEC, and lacks certain detail of the final circular, such as the number of shares being offered or the initial price. It is circulated to generate interest in an upcoming sale of shares or bonds.