A Red Herring Prospectus (RHP) is a preliminary document issued by a company before an IPO that contains details about the business, financials, and risks, but does not include the final issue price or number of shares.
An RHP is a crucial document for investors to evaluate a company before investing in its IPO. It provides comprehensive information about the company’s operations, financial performance, risks, and objectives of raising funds.
It is filed with the Securities and Exchange Board of India and is made available to the public before the IPO opens.
"Before applying for an IPO, an investor reads the RHP to understand the company’s financial health and risks."