IPO Terminology
Red Herring Prospectus (RHP)
A Red Herring Prospectus (RHP) is an official document filed by a company with SEBI and RoC (Registrar of Companies) before launching its IPO. It contains all key details about the business, financials, promoters, object of the issue, and risks, except for the final price of the shares.
Why it matters
Reading the RHP is the best way to perform fundamental research on the company before investing.
Common Questions about Red Herring Prospectus (RHP)
What is the difference between RHP and Prospectus?
An RHP does not contain the final share price or quantity. The final Prospectus contains these final details and is filed after the bidding completes.