What is Drhp in Sebi?

What is Drhp in Sebi?

When a company plans to raise money (for example: float an IPO) from the public by selling its shares to investors, it files and submits a Draft Red Herring Prospectus (DRHP), also known as ‘offer document’ or ‘preliminary registration document’, with the market regulator Sebi (Securities and Exchange Board of India).

Which company has submitted DRHP to Sebi?

State-owned Life Insurance Corporation (LIC) had filed an updated DRHP for the IPO with the Securities and Exchange Board of India (SEBI), a government official told CNBC-TV18.

What is Drhp report?

A Draft Red Herring Prospectus (DRHP) is a document that is prepared to introduce a new business or product to a potential investor.

What is RHP and Drhp?

The main difference between a DRHP and RHP is that DRHP is not an official offer to sell the security. On the other hand, the final prospectus is an official document and includes the price of the sold securities. Once approved, DRHP becomes RHP containing the details of the issue.

What is the purpose of Drhp?

A Draft Red Herring Prospectus, or offer document, is when a company that is planning to raise money from the public provides detailed information about its business operations and financials.

How do you read a Drhp?

The Core of reading DRHP involves analysing the Company’s audit reports and financial statements, i.e. profit & loss statement and balance sheet. Firstly, we look at the auditor’s comments on the financial statement. A qualified auditor’s opinion should be carefully studied.

Who files Drhp?

Healthvista India, the leading out-of-hospital healthcare provider that operates out-of-hospital healthcare services brand, Portea, said it had filed its Draft Red Herring Prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) to raise up to Rs 1000 …

Where is Drhp filed?

Securities and Exchange Board of India
A Red Herring Prospectus, or offer document, is filed by a company to SEBI (Securities and Exchange Board of India) when it intends to raise money from the public by selling shares of the company to investors.

Why is it called Drhp?

“Red-herring prospectus” means a prospectus that does not have complete particulars on the price of the securities offered and quantum of securities offered.

What companies filed Drhp?

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What is RHP in stock market?

A Red Herring Prospectus, or offer document, is filed by a company to SEBI (Securities and Exchange Board of India) when it plans to raise money from the public by selling shares of the company to investors.

What is the purpose of DRHP?

What does DRHP contain?

A draft red herring prospectus (DRHP), also known as the offer document, is prepared by the merchant bankers as a preliminary registration document for companies looking to float an IPO for book building issues.

What should I look for in a Drhp?

Find out what the company intends to do with the capital it raises through the IPO. Does the company plan to reduce its debt, purchase new assets or meet its working capital needs? Also check the capital structure of the company to see if any big private investors have put money into the company.

How do I find a company’s Drhp?

A company’s DRHP can be accessed on various platforms such as the merchant banker website, the company’s official website, stock exchange websites or the official Sebi website. Additionally, online news portals, as well as newspapers, also make announcements in multiple languages.

How do you analyze Drhp?

10 key elements to analyse in RHP

1. Company background. As a potential shareholder, you should focus on the core business of the company.
2. Management.
3. Dividend Policy.
4. Financial Information.
5. Legal and other information.
6. Objects of the issue.
7. Offer Information.
8. History.