An Offer Document is an official document issued by a company when it plans to raise funds from the public through the issue of securities, such as shares or debentures. It provides detailed information about the companyís financials, business operations, objectives of the issue, and associated risks. Investors rely on this document to make informed investment decisions before subscribing to a new issue.

According to SEBI regulations, an offer document must be filed with the Securities and Exchange Board of India (SEBI) for review before the securities are offered to the public. The two most common types are the Draft Red Herring Prospectus (DRHP) and the Red Herring Prospectus (RHP). The DRHP is a preliminary version submitted to SEBI and the stock exchanges for comments, while the RHP is the final version shared with investors before the public issue opens.

The document typically includes essential sections such as the companyís background, promotersí details, industry overview, financial statements, risk factors, use of proceeds, and legal disclosures. This ensures transparency and helps safeguard investor interests by disclosing both opportunities and potential risks associated with the investment.

SEBI mandates that all material information be presented clearly to prevent misrepresentation or omission. Investors should carefully read the offer document to understand the companyís fundamentals and assess whether the investment aligns with their risk appetite and financial goals.

In essence, an Offer Document serves as a vital tool for investor protection and market transparency. By ensuring adequate disclosures and compliance, it builds trust in the capital markets and supports informed decision-making among retail and institutional investors alike.