FirstCry-backed Swara Baby Products submits papers with SEBI for ₹1,000 crore IPO

Diaper manufacturer Swara Baby Products has filed preliminary papers with capital markets regulator Securities and Exchange Board of India (SEBI) to raise ₹1,000 crore through an initial public offering (IPO).

The proposed initial share sale will be a mix of fresh issuance of shares valued at ₹500 crore and an offer for sale (OFS) of ₹500 crore by promoters FirstCry parent Brainbees Solutions and Anadya Bon Merchari LLP.

The net proceeds from the issue will be utilised for the following objects:

• Part-financing capital expenditure requirement towards establishing a new manufacturing plant
• Repayment of certain outstanding borrowings
• Investment in wholly-owned units, Solis Hygiene, Swara Hygiene and KAEHPL, for debt clearance
• Inorganic growth through acquisitions and general corporate purposes

"Our company expects to receive the benefits of listing of the equity shares on the stock exchanges, including among other things, enhancement of our company’s brand name and creation of a public market for the equity shares in India," according to the draft red herring prospectus.

Avendus Capital and JM Financial are the issue's merchant bankers, while MUFG Intime India is the registrar.

Shares of the company will be listed on the NSE and the BSE.

Swara Baby Products is a specialised, independent manufacturer of disposable consumer products related to baby care, adult incontinence and feminine hygiene product categories. Its product portfolio includes baby tape style diapers, baby pant style diapers, adult tape style diapers, adult pant style diapers, sanitary napkins and panty liners.

Additionally, it also manufactures, markets and sells home brand products (baby diapers under the 'Cuddles' brand and adult diapers under the 'Shields' brand) to end consumers through online commerce and modern trade channels.