Categories: IPO

Red Herring Prospectus

IPOs present a good opportunity for investors to be part of companies with good growth potential and strong fundamentals. But it is important to know all the important aspects of the offer before investing in it. The RHP is the reference point for the investors to get information about the IPO.

The Red Herring Prospectus or RHP is the final offer document that contains all the information related to the company and the IPO. A company has to file this document with SEBI and only after receiving approval of the same it can go ahead with the IPO. It has all the key details related to the company’s promoters, business model, future projections, capital structure, industry overview, competition, past financial performance, key ratios of the business, and details of the IPO (IPO size, IPO dates, eligible investor class and percentage of allotment).

Where can one find RHP?

Investors can access RHP from the SEBI or the company’s website. Websites of stock exchanges, merchant banks and even brokers often have this document.

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