Reading a Red Herring Prospectus: a reference guide

Mon, 11 May 2026 00:00:00 +0000

A Red Herring Prospectus (RHP) is the legally binding offer document that an Initial Public Offering (IPO) issuer files with SEBI, the exchanges, and the Registrar of Companies before the subscription window opens. It is the single authoritative source of information on an IPO and the document from which institutional investors, analysts, and journalists draw their assessments of the issue. For retail investors accustomed to summary notes and social-media commentary, the RHP can be daunting: mainboard RHPs typically run to 300-700 pages. This article provides a structured reference guide to the sections of an RHP that are most relevant to an investor evaluating an IPO, ordered by their analytical importance.

Red Herring Prospectus (RHP) in India

Mon, 11 May 2026 00:00:00 +0000

A Red Herring Prospectus (RHP) is the legally binding offer document that an issuer files with the Securities and Exchange Board of India (SEBI), the stock exchanges, and the Registrar of Companies before opening an Initial Public Offering (IPO) to public subscription. It derives its name from the mandatory disclaimer, printed in red ink on the front page of early-twentieth-century American prospectuses, warning readers that the document was not yet final. In India the term has been formalised under the SEBI (ICDR) Regulations, 2018, which defines the RHP as a prospectus filed under section 32 of the Companies Act, 2013, that does not contain the final offer price or final number of shares offered but contains all other material disclosures. The final price, and in some structures the exact number of equity shares, are inserted in a supplementary document called the Prospectus or Pricing Supplement filed after the book building process concludes and before allotment.

Red Herring Prospectus on WebNotes

Reading a Red Herring Prospectus: a reference guide

Red Herring Prospectus (RHP) in India