Swara Baby Products IPO

Swara Baby Products, part of Brainbees Solutions, has submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) as it prepares to launch an initial public offering (IPO). This IPO includes a fresh equity issuance of up to Rs 500 crore and a simultaneous offer for sale (OFS) amounting to Rs 500 crore from current shareholders.

Details of the Offer for Sale

The OFS features shares valued at Rs 300 crore from Brainbees Solutions Ltd (FirstCry), which owned a 76.59% stake in Swara Baby at the time of filing the DRHP. Additionally, promoter entity Anadya Bon Merchari LLP will contribute shares worth Rs 200 crore.

Use of IPO Proceeds

As per the DRHP, Swara Baby intends to allocate Rs 198.2 crore from the fresh issue towards the establishment of a new manufacturing unit in Madhya Pradesh. Furthermore, Rs 100 crore is earmarked for debt repayments, while Rs 27.5 crore will be directed to subsidiaries Solis Hygiene, Swara Hygiene, and KAEHPL for settling their debts. The remaining funds will be utilised for strategic growth through acquisitions and general corporate activities.

Management and Registrar

JM Financial and Avendus Capital are appointed as the book-running lead managers for this issue, with MUFG Intime India Private Limited serving as the registrar.

Potential Pre-IPO Placement

The company may explore a pre-IPO placement of up to Rs 100 crore in collaboration with the book-running lead managers. Should this placement occur, the size of the fresh issue will be adjusted accordingly.

Company Background

Established in 2016, Swara Baby is known for its production of disposable hygiene products, such as baby diapers, adult diapers, sanitary napkins, disposable underpads, and wet wipes. The company functions as a contract manufacturer for numerous consumer brands and also markets products under its private labels.

Market Position

Swara Baby claims to be the largest contract manufacturer of disposable hygiene products in India by value for FY25. It caters to both domestic and international clients in the baby care, feminine hygiene, and adult incontinence sectors.

Financial Performance

For the fiscal year ending March 2026, Swara Baby Products announced a robust 23.4% year-on-year rise in operating revenue to Rs 1,164 crore, up from Rs 943 crore in FY25. The company’s profit also witnessed an 18.5% increase, reaching Rs 96 crore for the same period.

Recent Acquisition

In December of the previous year, Brainbees Solutions, via its subsidiary Swara Baby Products, secured a 100% stake in KA Hygiene through a share swap transaction valued at Rs 57.74 crore.