How to read a DRHP: an Indian IPO research checklist

A draft red herring prospectus is a starting point for research. It may not contain final offer dates or a price band. Follow later offer documents and corrigenda.

1. Understand what the company does

Read “Our business”, the industry overview and revenue breakdowns. Write one sentence explaining who pays the company and why. Check customer, supplier and geographic concentration.

2. Follow the offer proceeds

Separate fresh issue from OFS. Read “Objects of the offer” and identify the use, amount and intended timing of proceeds. The total offer headline may include proceeds to selling holders.

3. Compare financial periods consistently

• Check that figures use the same currency unit and consolidated or standalone basis.
• Keep partial-year periods separate from full financial years.
• Compare revenue, profit and cash from operations. Profit and operating cash flow can diverge.
• Read debt, working capital and exceptional items alongside growth.

4. Examine promoters, management and risks

Check ownership, related-party transactions, litigation and auditor disclosures. Read risk factors for concrete dependencies, regulatory exposure and capital needs. Missing extracted risk text does not mean the company has no risks.

5. Return to the final terms

When the RHP or final prospectus becomes available, revisit the offer size, price band, lot size, investor categories and issue schedule. A document filing date cannot establish a listing date.

This checklist organizes research; it does not decide whether to apply.

Check the original sources

• SEBI public issue filings — find the issuer’s offer document and any later updates.
• NSE IPO market information — check exchange notices and issue information.
• BSE public issue information — verify the relevant exchange’s current issue terms.