Full formBusiness & Corporate
RHPstands forRed Herring Prospectus
Full Form of RHP
What is RHP?
A Red Herring Prospectus (RHP) is a preliminary document filed by a company with the Securities and Exchange Board of India (SEBI) before launching an Initial Public Offering (IPO). It contains all key information about the company's business, financials, management, and objectives of the issue, except the final price and issue size, which are determined later. The term 'red herring' originates from the practice of printing a red disclaimer on the cover to indicate that the document is not final. In India, the RHP is a critical step in the IPO process, enabling investors to evaluate the company before the issue opens. It is often preceded by a Draft Red Herring Prospectus (DRHP). The RHP is used by investment bankers, analysts, and retail investors to make informed decisions. For students preparing for banking and finance exams like RBI Grade B, SEBI Grade A, or NISM certifications, understanding the RHP is essential as it frequently appears in questions on capital market regulations. The document must be updated after the price is fixed and then becomes the final prospectus.
RHP का फुल फॉर्म
रेड हेरिंग प्रॉस्पेक्टस
Example
The company revised its RHP to include updated financials and received SEBI approval for its ₹2,000 crore IPO.
RHP — frequently asked questions
What is the full form of RHP?
RHP stands for Red Herring Prospectus, a document companies file with SEBI before launching an IPO, containing all details except the final price.
How is RHP different from DRHP?
DRHP (Draft Red Herring Prospectus) is the initial draft filed with SEBI for review, while RHP is the updated version filed after SEBI approval, still without the final price.
Is RHP mandatory for all IPOs in India?
Yes, every company planning an IPO in India must file an RHP with SEBI as per the SEBI (Issue of Capital and Disclosure Requirements) Regulations.