IPO Learning Guide
DRHP full form is Draft Red Herring Prospectus, and RHP full form is Red Herring Prospectus. Both are IPO offer documents filed with SEBI and the stock exchanges, but at different stages — and with one crucial difference: only the RHP contains the final price band.
Also available in हिंदी and मराठी.
A Draft Red Herring Prospectus (DRHP) is the first offer document a company files with SEBI when planning an IPO. It discloses the company’s business, financials, risk factors, promoters, and objects of the issue — but does not include the final price band or exact number of shares on offer. SEBI and the public get roughly 21 days to review and comment on a filed DRHP before the company proceeds.
The Red Herring Prospectus (RHP) is filed just before the IPO opens for bidding. It is the updated, near-final version of the DRHP that now includes the price band, lot size, issue size, and any changes made in response to SEBI’s observations. The RHP (or an even later “final prospectus” with the exact issue price after book building) is the document investors are legally bidding against.
| Aspect | DRHP | RHP |
|---|---|---|
| When filed | Before the IPO roadshow, for SEBI/public review | Just before the IPO opens for bidding |
| Price band | Not included | Included |
| Issue size / lot size | Indicative only | Finalized |
| Purpose | Regulatory & public comment | Investor bidding reference |
Reading the RHP (not just the DRHP) before applying matters because it’s the only document with the actual price you’ll be paying. Every IPO’s page on IPOCraft links directly to the official DRHP and RHP filed with SEBI, so you can go straight to the source document instead of hunting for it.
DRHP stands for Draft Red Herring Prospectus. RHP stands for Red Herring Prospectus.
No. The price band is only finalized and disclosed in the RHP, filed closer to the IPO’s opening date.
Yes. SEBI’s observations, market conditions, or updated financials can all lead to changes between the DRHP and the final RHP.
