A draft prospectus is a first legal document that a company files to SEBI prior to proceeding with an initial public offering (IPO)
This is a preliminary prospectus known as a Draft Red Herring Prospectus (DRHP). It is the first document filed by the issuing company with the Securities Exchange Board of India (SEBI).
The draft prospectus contains detailed information about the company, its business, financial performance, and the securities offered.
The DRHP has to be approved by SEBI or the stock exchanges, depending on whether it is a mainboard IPO or an SME IPO.
The company usually does not provide all the information about the offer in the draft prospectus. The detailed information is contained in the Red Herring Prospectus (RHP). For more information on DRHP click here.
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