How to read an RHP / DRHP: the sections that matter

The DRHP is the draft offer document filed with SEBI for public comment. The RHP is the near-final version released before the issue opens and contains the price band. You can download both from the lead managers’ websites, SEBI and the exchanges.

Read these first

1. Summary of the offer – issue size, fresh issue vs offer for sale, reservation by category.
2. Objects of the issue – where the money will be used. Repaying debt or “general corporate purposes” deserves more scrutiny than building capacity.
3. Risk factors – the company’s own list of what can go wrong, including litigation and customer concentration.
4. Financial statements – revenue, profit, debt and cash flow for several years.
5. Promoters and management – track record, pledges and related-party dealings.
6. Valuation – compare the price-to-earnings and other ratios with listed peers.

Red flags

• Profit that is not backed by cash flow.
• Large related-party transactions.
• A big offer for sale by promoters just before listing.
• Rising debt while the proceeds are used to repay old debt.

Frequently asked questions

Where can I download the RHP?

From the websites of the lead managers, the NSE and BSE issue pages and SEBI’s offer-document section.

Last updated 2026-10-20. Information only, not investment advice.