drhp-ipo-analysislisted

# DRHP / IPO Analysis (India) A DRHP is written by bankers to sell shares. It is also, by SEBI mandate, the most complete disclosure document any Indian company ever produces. Read it as a hostile witness under oath: everything in it is true, and the arrangement is designed to lead you. ## Document sequence - **DRHP** (Draft Red Herring Prospectus) — filed with SEBI, public, no price band - **SEBI observations** — issued after review; the issuer must incorporate them - **RHP** (Red Herring Prospectus) — filed with RoC, carries the price band and the anchor allocation - **Prospectus** — final, post-issue, carries the discovered price Read the **RHP** for a decision. Read the **DRHP** for what changed between the two. ## The read order Do not start at page 1. Start here: 1. **Objects of the Issue** 2. **Capital Structure** — including the average cost of acquisition per share for promoters and selling shareholders 3. **Restated Financial Information** — the summary statements and the auditor's examination report 4. **Risk Factors** — the first ten, in full 5. **Basis for Issue Price** 6. **Related Party Transactions** 7. **Outstanding Litigation and Material Developments** 8. **Our Business** and **Industry Overview** — last, and sceptically ## Step 1 — Fresh issue vs offer for sale This is the first question and it decides most of the analysis. ``` Total issue size = Fresh issue + Offer for Sale (OFS) ``` - **Fresh issue** proceeds go to the company. Growth capital,