Who creates preliminary prospectus of a company in an IPO?

A Draft Red Herring Prospectus (DRHP) is a preliminary prospectus for an IPO. It is usually prepared by the company's lead managers in collaboration with its legal, financial, and other advisory teams. These professionals gather and analyze detailed information about the company, including its finances, operations, management, and industry overview. Key entities involved in drafting the DRHP include:

1. The Company – Provides business, financial, and operational details.
2. Merchant Bankers (Book Running Lead Managers - BRLMs) – Oversee the IPO process, ensure regulatory compliance, and structure the document.
3. Legal Advisors – Assist in drafting legal disclosures and risk factors.
4. Auditors – Verify financial data and ensure accuracy.
5. Registrar and Stock Exchanges – Provide input on compliance and listing requirements.

The DRHP is submitted to the Securities and Exchange Board of India (SEBI) for review and approval before the IPO process moves forward.