What Is RHP in an IPO?
RHP stands for Red Herring Prospectus. It is the updated and final prospectus document filed by an IPO-bound company with stock exchanges (NSE/BSE) and SEBI after receiving SEBI's observations on the DRHP. Unlike the DRHP, the RHP includes the price band (floor price and cap price) and the exact dates of the IPO subscription period. The RHP is filed when the IPO is about to open for public subscription and is the document investors should read before applying.
Key Differences Between DRHP and RHP
| Parameter | DRHP | RHP |
|---|---|---|
| Price band | Not included | Included |
| IPO dates | Not included | Included |
| SEBI approval | Filed for SEBI review | Filed after SEBI observations received |
| Availability | Months before IPO opens | Just before IPO opens |
| Status | Draft/preliminary | Final prospectus before allotment |
Important Sections in an RHP
- Price band and lot size: The range within which you can bid and the minimum quantity per application.
- IPO open and close dates: The subscription window, typically three working days.
- Objects of the issue: What the company will do with the money raised.
- Updated financial statements: May be more recent than those in the DRHP if the filing was delayed.
- Risk factors: Any updates or new risks since the DRHP was filed.
- Basis of allotment: Details about how allotment will be conducted for each investor category.
Where to Access the RHP
The RHP is publicly available and can be downloaded from:
- NSE (nseindia.com) in the IPO listings section.
- BSE (bseindia.com) in the IPO section.
- SEBI website (sebi.gov.in).
- The company's own IPO website or investor relations page.
- Your broker app or financial aggregator websites.
Reading the RHP Efficiently
The full RHP can be hundreds of pages long. Investors can focus on the most critical sections: objects of the issue, financial highlights, risk factors, and management backgrounds. Financial newspaper summaries and IPO analysis platforms often present condensed versions of key RHP data. However, reading the original risk factors section directly is always recommended as it contains mandatory disclosures the company cannot hide.
Key Takeaway
The RHP is the final, complete document before an IPO opens, containing price band, dates, and all material disclosures. Every serious IPO investor should at minimum scan the risk factors and objects of the issue before applying. Use the Lemonn app for IPO summaries and analysis to complement your reading of the official RHP document.
