According to the explanation of sub section (4) of section 60B of the companies Act, 1956 “Red-herring Prospectus” means a prospectus which does not have complete particulars on the price of the securities offered and the quantum of securities offered.
For example if a company issuing its shares to the public through book building process then it will specify only the no. of shares to be issued but not the exact price at which the shares are to be issued. Rather than it can specify a price band within which investor can make subscription.
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