Upcoming IPO: FirstCry-Backed Swara Baby Products Files DRHP for ₹1,000 Crore Public Issue

Swara Baby Products has submitted draft papers to the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) worth more than ₹1,000 crore, marking another addition to India’s growing primary market pipeline. The proposed issue consists of a fresh issue of equity shares worth up to ₹500 crore and an offer for sale (OFS) aggregating up to ₹500 crore.

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

IPO Structure and Fund Utilisation

According to the draft red herring prospectus (DRHP), existing shareholders will divest part of their holdings through the OFS. Brainbees Solutions Ltd, the parent company of FirstCry, plans to sell shares worth up to ₹300 crore, while Anadya Bon Merchari LLP will offload shares worth up to ₹200 crore.

The company intends to deploy ₹198.2 crore from the fresh issue proceeds to establish a new manufacturing facility in Madhya Pradesh. Another ₹100 crore has been earmarked for repayment or prepayment of borrowings. Swara Baby Products will also invest ₹27.5 crore in its subsidiaries—Solis Hygiene, Swara Hygiene, and K.A. Enterprises Hygiene Pvt. Ltd. is to assist them to pay off outstanding debts.

The balance proceeds will be used for inorganic growth opportunities, including acquisitions, as well as general corporate purposes. The DRHP also provides an option to raise up to ₹100 crore through a pre-IPO placement before the issue opens. JM Financial and Avendus Capital have been appointed as the book-running lead managers for the IPO.

Business Profile

Founded in 2018, Swara Baby Products manufactures disposable hygiene products across baby care, adult incontinence, and feminine hygiene categories. Its portfolio includes baby diapers, adult diapers, sanitary napkins, and panty liners, with a significant portion produced under contract manufacturing arrangements for consumer brands.

The company supplies products to customers, including Brainbees Solutions, Piramal Pharma and Himalaya Wellness Company. Besides manufacturing contracts, it also produces items under its own brand names like Cuddles and Shield. In December 2025 it expanded its presence in the feminine hygiene market with the acquisition of K.A. Enterprises Hygiene.

As per the DRHP, the company held a 37% value market share in India’s baby diaper contract manufacturing segment and a 36% share in adult diaper contract manufacturing during FY25. It currently operates four manufacturing facilities located in Pithampur and Indore, Madhya Pradesh.

Financial Performance

For FY26, Swara Baby Products reported revenue from operations of ₹1,163.9 crore, compared with ₹942.97 crore in FY25. Profit after tax increased to ₹95.58 crore from ₹80.67 crore during the same period.

Baby diapers remained the company’s largest business segment, contributing 79% of total product sales in FY26. The planned IPO is expected to help fund capacity expansion, strengthen the company’s balance sheet and provide financial flexibility for future growth initiatives.