How to read an offer document

Offer documents are long, but you don't need to read every page. These sections give you most of what matters.

• Offer Document Summary: a short overview of the business, the issue and key financials.
• Risk Factors: the company's own list of what could go wrong. Read at least the first 15–20.
• Objects of the Offer: how fresh-issue money will be used.
• Basis for Offer Price: EPS, P/E and the list of comparable listed peers.
• Our Business: what the company does, its customers, products and strategy.
• Financial Information: restated statements, including cash flows.
• Outstanding Litigation: legal cases involving the company, promoters and directors.
• Capital Structure: shareholding before and after the issue, and lock-in details.

Where to find them

DRHPs and RHPs are published on SEBI's website and on the NSE and BSE websites, usually under public issues or IPO sections. The lead managers' websites also host them.