New IPO Alert: FirstCry-backed Swara Baby Products gets SEBI nod for ₹1,000 crore issue

The proposed IPO comprises a fresh issue of equity shares aggregating up to ₹500 crore and an offer for sale (OFS) valued at ₹500 crore by promoters, according to the draft red herring prospectus (DRHP).

The OFS includes the sale of shares worth up to ₹300 crore by Brainbees Solutions Ltd and up to ₹200 crore by Anadya Bon Merchari LLP.

The company filed its preliminary IPO papers on July 2 with the Securities and Exchange Board of India (SEBI) and obtained the regulator’s final observation on October 6.

The SEBI observations mark an important step in the IPO process, allowing companies to proceed with preparations for their public issues, subject to applicable regulatory requirements.

As per the draft papers, the company proposes to utilise the net proceeds from the fresh issue to set up a new manufacturing facility in Madhya Pradesh with an allocation of ₹198.2 crore, repay or prepay borrowings amounting to ₹100 crore, and invest ₹27.5 crore in subsidiaries Solis Hygiene, Swara Hygiene and K.A. Enterprises Hygiene Pvt Ltd (KAEHPL) for repayment of their outstanding borrowing.

Additionally, funds will be used to pursue inorganic growth through acquisitions and for general corporate purposes.

Swara Baby may also undertake a pre-IPO placement of up to ₹100 crore.

Founded in 2018, Swara Baby manufactures disposable hygiene products across 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 supplies products to customers, including Brainbees Solutions, Piramal Pharma and Himalaya Wellness Company. It also markets its own brands, Cuddles and Shield, through online and modern retail channels. In December 2025, it acquired KA Enterprises Hygiene Pvt Ltd, a manufacturer of feminine hygiene products.

It operates four manufacturing facilities across Pithampur and Indore in Madhya Pradesh.

For FY26, the company reported revenue from operations of ₹1,163.9 crore, compared with ₹942.97 crore in FY25. Profit after tax stood at ₹95.58 crore in FY26 against ₹80.67 crore in the previous financial year.

JM Financial and Avendus Capital are the book-running lead managers to the issue.