DRHP meaning in simple words: the draft filed before an IPO
DRHP: (draft red herring prospectus) is the first draft of the document a company files with SEBI before an IPO, setting out its business, its numbers and its risks.
The story
two people, one chai stall
September 2022. A draft as thick as a brick lands on Sameer's desk.
SameerI only wanted to sell some shares. Why is this heavier than a milk can?
RiyaIt's the DRHP, the draft red herring prospectus. We file it with SEBI before the IPO.
SameerRed herring?
RiyaAn old name for a draft. It doesn't have the final share price yet.
SameerSo what's inside?
RiyaEverything. Our accounts, how many shares we'll sell, what we'll do with the money, who owns what. And a long list of risks, like milk prices or losing a stall spot.
SameerWho reads all that?
RiyaSEBI, the stock exchanges, and anyone who wants to. It's made public for 21 days so people can comment.
SameerThen we sell?
RiyaThen SEBI sends its observations. We fix what it asks, and we have 12 months from then to open the IPO.
SameerThat's a long wait for chai money.
RiyaOurs took about 13 months: filed in September 2022, IPO in October 2023.
The grown-up version
same idea, exact words
The draft red herring prospectus is the draft offer document an issuer files, through its lead managers, with SEBI and the stock exchanges before a book-built IPO. It is made public for comments for at least 21 days. SEBI then issues its observations, and the issue must open within 12 months of them. It is called a 'red herring' because it leaves out the final price and some issue details, which are filled in later in the red herring prospectus and the final prospectus. Since March 2026, a draft abridged prospectus must be filed along with it.
Which rule asks for itRegulations 25, 26 and 44, SEBI (ICDR) Regulations, 2018; Section 32, Companies Act, 2013 (red herring prospectus).
Spot it in the wild
a real annual report, a real page
- Hero FinCorp filed its draft prospectus with SEBI on 31 July 2024, and an update in November 2025.
- The planned IPO has two parts: new shares and an offer for sale by existing shareholders.
Don't mix it up
the usual confusions
DRHP ≠ RHP (red herring prospectus)
The RHP is the near-final version, filed with the Registrar of Companies just before the issue opens. The DRHP is the first draft, filed with SEBI months earlier.
DRHP ≠ prospectus
The final prospectus comes after bidding and includes the final price. The DRHP doesn't have a price yet.
DRHP ≠ IPO
Filing a DRHP doesn't mean an IPO will happen. Some companies file, wait, and never list.
Three quick sips
no sign-up, nothing saved
Hindi mein
डीआरएचपी (DRHP)
DRHP वह पहला मसौदा दस्तावेज़ है जो कंपनी IPO से पहले SEBI में जमा करती है, जिसमें उसका कारोबार, आंकड़े और जोखिम लिखे होते हैं।