A promoter is the original founder or controlling shareholder of the company, formally defined under SEBI's IPO regulations. For Indian IPOs, promoters and their immediate family — including the 'promoter group' — are required to lock in at least 20% of post-issue capital for 18 months, with the balance locked for six months.
The RHP discloses pre-IPO and post-IPO promoter shareholding, lock-in schedules, related-party transactions involving the promoter group, and any material litigation. Promoter holding signals skin-in-the-game: very low promoter holding post-IPO can be a yellow flag, suggesting the founders are cashing out heavily.
Some issues are 'professionally managed' with no identifiable promoter — typically large PE-backed or government-owned issues. SEBI rules treat these as professionally managed companies subject to slightly different governance disclosures.