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DRHP Preparation

Drafting the Draft Red Herring Prospectus for Public Issues

The Draft Red Herring Prospectus (DRHP) is the key document filed with SEBI ahead of a public issue, covering business and industry overview, risk factors, restated financial statements, and the objects of the issue.

We support companies and their merchant bankers in compiling and drafting the DRHP, coordinating financial restatement, risk factor identification, and legal disclosures required for a smooth SEBI review process.

Our DRHP Preparation Services

Business & Industry Overview Drafting

Drafting the business description and industry overview sections of the DRHP.

Risk Factor Identification & Drafting

Identifying and drafting comprehensive risk factor disclosures.

Financial Statement Compilation & Restatement

Compiling and restating financial statements as required for the offer document.

Objects of the Issue Drafting

Drafting the objects of the issue and use of proceeds sections.

Legal & Regulatory Disclosure Compilation

Compiling legal, regulatory, and litigation disclosures for the DRHP.

Coordination with SEBI/Exchange Review Process

Coordinating responses to SEBI and exchange observations during review.

Why DRHP Preparation Matters

  • A well-drafted DRHP reduces SEBI observation and query cycles
  • Comprehensive risk disclosure helps protect against future litigation
  • Accurate restated financials build investor trust
  • Clear articulation of issue objects supports the valuation narrative
  • Structured drafting saves time closer to the filing deadline
  • A coordinated approach reduces last-minute compliance gaps

Frequently Asked Questions

What is a DRHP and why is it filed?
The DRHP is the draft offer document filed with SEBI and stock exchanges ahead of a public issue, disclosing the company's business, financials, risk factors, and issue details for regulatory review and public feedback.
What is the difference between DRHP and RHP?
The DRHP is the draft version filed for SEBI review and public comments, while the Red Herring Prospectus (RHP) is the updated version filed closer to the issue opening, incorporating SEBI's observations and updated information, excluding price or number of shares in a fixed price issue.
How long does SEBI take to review a DRHP?
SEBI typically issues its observations within a specified period after filing, though the exact timeline can vary depending on the completeness of the filing and the nature of queries raised.
What financial statements need to be included in a DRHP?
The DRHP includes restated audited financial statements for a specified number of preceding financial years, prepared in accordance with SEBI's prescribed disclosure requirements.
Who is responsible for drafting the DRHP?
The DRHP is prepared jointly by the company, its merchant bankers, and legal counsel, drawing on financial, legal, and business inputs coordinated across the IPO working group.

Talk to Our DRHP Preparation Team

From assessment to execution, we help you navigate drhp preparation with clarity and compliance.

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