DRHP - Draft Red Herring Prospectus
Explore unparalleled investment opportunities with shares of companies that have recently filed their DRHP, taking a significant step towards going public.
Frequently Asked Questions
Find answers to common questions that you may have in your mind.
Q.1 : What is a Draft Red Herring Prospectus (DRHP)?
A DRHP is a preliminary registration document that contains detailed information about a company’s business, financials, promoters, and risks involved. For Main Board IPOs, it’s filed with SEBI, while for SME IPOs, it’s filed with the respective stock exchanges.
Q.2 : Why is the DRHP important for investors in unlisted shares?
The DRHP offers critical insights into the company’s financial health, business model, and future plans, crucial for making informed investment decisions in pre-IPO shares. Plus, with the filing of DRHP is the indication that company will file for an IPO soon.
Q.3 : How can I access a company’s DRHP?
For Main Board IPOs, the DRHP is available on the SEBI website, and for SME IPOs, it can be accessed from the respective stock exchange’s website.
Q.4 : What key information should I look for in a DRHP?
Focus on the company’s business model, financial performance, details about the promoters and management team, the objective of the IPO, and risk factors.
Q.5 : Should I Buy Unlisted Shares After the Filing of DRHP?
In the unlisted market, it is often advisable to consider buying unlisted shares before there is any public news of an IPO. This strategy is based on several market observations and dynamics: