Draft Red Herring Prospectus (DRHP)

DRHP stands for Draft Red Herring Prospectus. The DRHP is also known as a draft offer document. The Draft Herring Prospectus is the preliminary document that the company files with SEBI when it first goes public. For more information click here.

A DRHP contains

• Information about the company's business plan, financial position and key offerings
• Information that helps potential investors study the details of the IPO to gauge their interest before making a final decision
• Information that helps investors assess the company's growth potential, competitive advantage, and financial management.

A DRHP is prepared by merchant bankers for potential IPO companies in the case of book-building issues.

SEBI takes about 4 to 6 weeks to approve a DRHP if no major changes are required. Once approved by SEBI, it takes about 4 to 6 weeks for the IPO to be launched.