what is draft red herring prospectus

You are here:

Draft red herring prospectus is the primary document that needs to be submitted by the private company to the regulator for the approval to raise funds via Initial Public Offering.

This document is prepared by the merchant bankers hired by the company for the purpose of IPO.

The document includes information about the company’s business operations, promoters, financials, it’s standing in the industry it deals in and listed or unlisted peers.

The document will contain details about the type of business and industry the company operates it. Complete details about the promoters of the company are mentioned. The Financial status of the company and the profits and loss for the last financial years will be mentioned.

In detail the assets and liabilities of the company and also the total equity of the company. The strengths of the company and the weakness of the company. Any litigations against the company that are active at present at the time of IPO.

And most important the details of the equity like the total offer size, price band of the shares is present in the document.

Was this article helpful?
Dislike 0

Welcome Back!

Login to your account below

Create New Account!

Fill the forms below to register

Retrieve your password

Please enter your username or email address to reset your password.

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?