Draft Red Herring Prospectus (DRHP)

A Draft Red Herring Prospectus (DRHP) is the preliminary offering document filed by a company with SEBI before launching its Initial Public Offering (IPO). It contains detailed information about the company's business model, financial statements, management team, use of IPO proceeds, risk factors, litigation history, and corporate governance structure — but does not yet include the final issue price or the number of shares being offered, since these are determined later through the book building process. SEBI reviews the DRHP and may issue observations requiring the company to clarify or disclose additional information before the IPO proceeds. The DRHP is publicly available on the SEBI and stock exchange websites, allowing investors to conduct due diligence before the IPO opens. Once SEBI issues its observations and the company finalises pricing details, the DRHP is converted into the final Red Herring Prospectus (RHP).