Swara Baby Products Gets SEBI Nod for Rs 1,000 Crore IPO
Swara Baby Products, a key player in contract manufacturing of disposable hygiene items, has secured approval from the Securities and Exchange Board of India (SEBI) for its upcoming Rs 1,000 crore initial public offering (IPO). This IPO includes a fresh issue of Rs 500 crore and an offer for sale (OFS) also amounting to Rs 500 crore. The parent company of FirstCry, Brainbees Solutions, plans to sell shares worth Rs 300 crore, while Anadya Bon Merchari LLP will offload shares valued at Rs 200 crore.
The company submitted its draft red herring prospectus (DRHP) to SEBI in July this year. Swara Baby intends to allocate Rs 198.2 crore from the fresh proceeds for a new manufacturing facility in Madhya Pradesh. An additional Rs 100 crore is earmarked for repaying specific loans. Furthermore, Rs 27.5 crore will be channelled into its subsidiaries—Solis Hygiene, Swara Hygiene, and KAEHPL—for debt repayment. The remaining funds will support acquisitions and general corporate activities.
There is also the possibility of a pre-IPO placement of up to Rs 100 crore in coordination with its banking partners.
About Swara Baby Products
Founded in 2018, Swara Baby produces a range of hygiene products, including baby diapers, adult diapers, sanitary napkins, and panty liners. Its corporate promoter, Brainbees Solutions, not only promotes the company but also serves as a major customer, alongside notable clients like Piramal Pharma and Himalaya Wellness. Additionally, Swara Baby markets baby diapers under the Cuddles brand and adult diapers under the Shield brand.
Market Position and Financial Performance
According to the DRHP, Swara Baby emerged as India’s leading hygiene contract manufacturer by value in FY25, holding a remarkable 37% share in the baby diaper contract manufacturing sector and an estimated 36% share in the adult diaper contract manufacturing market.
Swara Baby’s operating revenue surged by 23% to reach Rs 1,163.9 crore in FY26, up from Rs 942.97 crore in FY25. The company’s profit rose by 18%, attaining Rs 95.58 crore. Moreover, EBITDA for the year was Rs 192.77 crore, compared to Rs 162.72 crore in FY25.
JM Financial and Avendus Capital are serving as the book-running lead managers for this IPO.