DRHP vs RHP vs Prospectus: IPO Documents Explained

DRHP vs RHP vs prospectus is a comparison of three stages of the same offer document, which every Indian IPO goes through. The DRHP (draft red herring prospectus) is the first draft, filed with SEBI for review. The RHP (red herring prospectus) is the near-final version, filed with the Registrar of Companies before bidding opens, without the final price. The prospectus is the final document, filed after the price is fixed, with the issue price and the number of shares.

All three describe the same company and the same offer. What changes is how complete and how final the numbers are. This guide covers the differences, the order they're filed in, and where to find the facts that matter in each.

DRHP vs RHP vs prospectus at a glance

What is a DRHP?

The draft red herring prospectus is the first public offer document. The company and its lead managers (merchant bankers) file it with SEBI and the stock exchanges. It contains almost everything an investor needs: the business, risk factors, restated financial statements, the objects of the issue, promoters and shareholding, legal proceedings and the planned structure of the offer.

After filing:

• The DRHP is published on SEBI's website for 21 days of public comments.
• SEBI reviews it and issues observations, which the company must address.
• The issue must open within 12 months of SEBI's observations, otherwise the company has to file again.

Some companies use SEBI's confidential pre-filing route instead. The first draft is not made public. After SEBI's observations, the company publishes an updated DRHP (UDRHP) for public comments before moving to the RHP.

On Eyepio, a company that has filed only a draft appears with the status Draft filed. Its page shows what the draft discloses; dates and price follow later.

What is an RHP?

The red herring prospectus is filed with the Registrar of Companies a few days before bidding opens. It has the final structure of the issue, the bid/offer dates, the reservation for each investor category and updated financials. It usually leaves out the price (hence "red herring": the price is not yet in the document).

The price band and minimum bid lot are announced by a public advertisement at least two working days before the issue opens. SEBI's rules say the cap of the band can be at most 120% of the floor price, and at least 105% of it.

The RHP is the document most people read before bidding. Look for:

• Offer structure: fresh issue and offer for sale (OFS), and how the issue is split between QIB, NII and retail
• Objects of the issue: what the fresh-issue money will be used for
• Risk factors: listed near the start, often 40+ pages
• Restated financial information: revenue, profit, net worth and borrowings for the last three years
• Basis for offer price: EPS, return on net worth, NAV per share and listed peers
• Outstanding litigation: cases involving the company, promoters and directors

To learn how these numbers decide who gets shares, read how IPO allotment works.

What is the prospectus?

Once bidding closes and the issue price is fixed through book building, the company files the prospectus with the RoC. It matches the RHP but fills in the final details:

• the issue price (and any discount for retail or employees)
• the final number of shares in the fresh issue and the OFS
• the final issue size in rupees

When Eyepio processes the final prospectus, the IPO page switches from the price band to the issue price.

Where to find the documents

• SEBI: drafts are under Filings → Public Issues on the SEBI website.
• Stock exchanges: RHPs and prospectuses are on the issue pages of NSE and BSE.
• Lead managers: the book-running lead managers host the documents on their websites.
• Eyepio: every IPO page has a Documents section linking to the filing each fact came from. Browse current issues on the upcoming IPOs list or by month on the IPO calendar.

How the documents fit into the IPO timeline

1. Company files the DRHP with SEBI (or files confidentially, then publishes a UDRHP).
2. Public comments for 21 days; SEBI issues observations.
3. Company files the RHP with the RoC; price band announced.
4. Anchor bidding, then the issue is open for three or more working days.
5. Issue price fixed; prospectus filed with the RoC.
6. Allotment on T+1 and listing on T+3.

The full sequence, with typical durations, is in our guide to the IPO timeline in India.

Frequently asked questions

Is the DRHP the same as the RHP?

No. The DRHP is a draft filed for SEBI's review and public comment. The RHP is filed later with the Registrar of Companies, after SEBI's observations, and includes the issue dates and final structure.

Why is it called a red herring prospectus?

Traditionally the document carried a notice in red saying the price and some details were not final. Today the name means a prospectus without the final price.

Does the RHP include the price band?

Usually not. The price band is announced by advertisement at least two working days before bidding opens, and many RHPs are filed with the price left blank.

How long after the DRHP does an IPO open?

It varies, from a few months to a year. The issue must open within 12 months of SEBI's observations on the draft.

Which document should I read before bidding?

The RHP has the complete disclosure for the issue, and the price band advertisement adds the price and lot size. The abridged prospectus is a shorter summary.