What is a DRHP? The first step before an Indian IPO
When a startup plans to go public, the first public paper is the DRHP, the Draft Red Herring Prospectus. For example, Zetwerk filed its DRHP with SEBI for a planned IPO, according to Inc42's September 2026 report.
What is in it
- What the company does and who its customers are.
- Its financial results for past years.
- Risks that investors should know about.
- How much money it wants to raise and how it will use it.
- Who owns the company and who is selling shares.
The steps
1. The company files the DRHP with SEBI, the market regulator.
2. SEBI reviews it and may ask questions or ask for changes.
3. After SEBI's observations, the company files the final document, the RHP, before the IPO opens.
4. The IPO opens, and investors can apply.
5. The shares list on the stock exchange.
What a DRHP does not mean
Filing a DRHP does not mean the company will definitely list. Some companies wait or drop the plan because of market conditions.
Confidential filing
Some companies file confidentially, so the public does not see the details until later.
Why you should read it
Before you apply to any IPO, the final prospectus is the best source of facts on the business and the risks.
This article is for information and is not investment advice.