What is DRHP in IPO: How to Read & Difference between DRHP and RHP?
What is DRHP in IPO ? DRHP stands for draft red herring prospectus, is the first document that needs to be prepared by the companies mulling to raise funds through IPO. The DRHP is filed with the SEBI to get the official approval and go for the IPO launch to raise the funds. The main motive of presenting this document is to provide investors the various crucial information about the company like the core business of the company, financials, company growth plan and the IPO fund where it will be used and the risk involved in the business. Though, it is not the final document related to IPO , a more comprehensive and updated version of DHRP is RHP or red hearing prospectus that needs to be presented after the observation given by the SEBI seeking additional information about the company. DHRP is usually prepared by the merchant bankers hired by the company to look after the IPO-related proceedings. Apart from SEBI, this document is also publicly pre...