The issue comprises a fresh issue and an offer for sale of Rs 500 crore each, with proceeds earmarked for capacity expansion, debt repayment and acquisitions
Swara Baby Products, a contract manufacturer of baby diapers, adult diapers and feminine hygiene products backed by FirstCry, has filed draft papers with the Securities and Exchange Board of India (Sebi) to raise Rs 1,000 crore through an initial public offering (IPO).
The proposed issue comprises a fresh issue of equity shares worth up to Rs 500 crore and an offer for sale (OFS) of Rs 500 crore by existing shareholders, according to the draft red herring prospectus (DRHP).
Under the OFS, Brainbees Solutions, the parent company of FirstCry, will offload shares worth up to Rs 300 crore, while Anadya Bon Merchari LLP will sell shares aggregating up to Rs 200 crore.
Funds Deployment
Swara Baby plans to use Rs 198.2 crore from the fresh issue to establish a new manufacturing facility in Madhya Pradesh. Another Rs 100 crore has been earmarked for repayment or prepayment of borrowings.
The company will also invest Rs 27.5 crore in its subsidiaries — Solis Hygiene, Swara Hygiene and K.A. Enterprises Hygiene Pvt Ltd (KAEHPL) — to enable them to repay outstanding debt. The remaining proceeds will be deployed towards inorganic growth opportunities, including acquisitions, as well as general corporate purposes.
The company may also undertake a pre-IPO placement of equity shares worth up to Rs 100 crore before the public issue. If completed, the size of the fresh issue will be reduced accordingly.
Founded in 2018, Swara Baby manufactures disposable hygiene products across the baby care, adult incontinence and feminine hygiene segments. Its portfolio includes baby diapers, adult diapers, sanitary napkins and panty liners, primarily manufactured under contract for consumer brands.
The company’s customers include Brainbees Solutions, Piramal Pharma and Himalaya Wellness Company. It also sells products under its in-house brands, Cuddles and Shield, through ecommerce platforms and modern retail outlets. In December 2025, Swara Baby acquired K.A. Enterprises Hygiene, a manufacturer of feminine hygiene products.
According to the DRHP, the company held a 37 per cent share of India’s baby diaper contract manufacturing market by value in FY25 and a 36 per cent share in the adult diaper contract manufacturing segment.
Swara Baby currently operates four manufacturing facilities across Pithampur and Indore in Madhya Pradesh.
For FY26, the company reported revenue from operations of Rs 1,163.9 crore, compared with Rs 942.97 crore in FY25. Profit after tax rose to Rs 95.58 crore from Rs 80.67 crore a year earlier.
Baby diapers remained the company’s largest revenue-generating category, contributing 79 per cent of total product sales during FY26. JM Financial and Avendus Capital have been appointed as the book-running lead managers for the proposed IPO.
