Offer Prospectus

An offer prospectus is the comprehensive legal disclosure document issued to prospective investors when securities are being offered to the public for subscription. It includes detailed information about the issuing company's business model, financial statements, promoter background, risk factors, objects of the issue, and terms of the offering. In India, SEBI mandates the filing of a Draft Red Herring Prospectus (DRHP) for public comment before an IPO, followed by the final Red Herring Prospectus (RHP) with the price band and a final Prospectus after pricing. Investors should read the offer prospectus carefully before applying to any public issue.