RESEARCH · 4 MIN READ
How to read a DRHP
A DRHP is long, but you do not need to read it from page one to the end. Read it in a decision-focused order.
Start with the issue structure
Check the fresh issue, offer for sale, selling shareholders and proposed use of funds. This tells you who receives the money.
Read the risk factors
Focus on company-specific risks: major customers, suppliers, licences, legal cases, debt covenants and dependence on promoters.
Study the business section
Understand products, capacity, customers, geography and competitive advantages. Verify whether claimed strengths are supported by numbers.
Review financial statements
Compare revenue, profit, margins, cash flow, borrowings and return ratios across the reported years. Read the accounting notes behind unusual movements.
Check contracts and litigation
Large related-party transactions, unresolved disputes or dependence on a small number of contracts can change the risk profile.
Reviewed for clarity · 2026-11-03