IPO Offer Document Review (DRHP/RHP)

Audit Indian IPO offer documents with the precision of a top-tier merchant banking director. This skill identifies internal inconsistencies, arithmetic errors, and regulatory gaps that automated scanners and casual readers miss. It focuses on the high-yield areas where issuers often fail: reconciling the Summary of Financial Information against restated statements and verifying the Basis for the Issue Price.

What it does

• Financial Reconciliation performs line-by-line checks between summary tables and primary financial statements to find mismatched figures.
• Arithmetic Verification re-foots every primary statement, KPI, and pricing calculation to ensure totals and ratios are mathematically sound.
• Regulatory Gap Analysis flags missing or incomplete disclosures required by SEBI ICDR 2018, the Companies Act 2013, and Ind AS.
• Material Movement Tracking identifies unexplained order-of-magnitude shifts in balance sheet items and traces them through MD and A and Risk Factors.
• Cash Flow Decomposition isolates working capital movements to determine if headline operating cash flow reflects actual performance.

How it works

1. Probe and Offset runs a script to establish the page offset between PDF numbering and printed pages, identifying non-searchable scanned sections.
2. Targeted Extraction uses specialized scripts to cluster words by vertical position, ensuring financial table columns remain aligned during processing.
3. Forensic Audit executes a specific order of work starting with financial summaries, primary statements, and the Basis for the Issue Price.
4. Severity Reporting generates a graded report (Low to High concern) citing every finding at the paragraph level against specific regulations.

Frameworks & tools

This skill utilizes Python scripts for PDF processing (probe.py, extract.py, render.py) and requires access to SEBI ICDR 2018, Companies Act 2013, Schedule III, and Ind AS regulatory frameworks.

Why this beats prompting it yourself

Generic prompts fail to handle the complex page offsets and column alignment issues inherent in 500-page Indian IPO prospectuses. This skill uses a specialized extraction logic that prevents "hallucinated" figures caused by collapsed table columns and enforces a strict standard of proof with paragraph-level regulatory citations.

Use cases

• DRHP/RHP Auditing to identify errors before submission to SEBI or release to the public.
• Investor Due Diligence for institutional desks needing to verify the "Basis for the Issue Price" and KPI claims.
• Issuer Correspondence to draft formal observation replies or letters to Book Running Lead Managers.
• Compliance Monitoring to ensure restated financials strictly adhere to Schedule III and Ind AS formatting.

Known limitations

Does not support pdftotext -layout or pdftoppm due to reliability issues. Requires manual verification of digits for low-quality scans flagged by the probe script.