- Swara Baby Products received SEBI approval for a Rs 1,000-crore IPO launch
- The IPO includes a fresh issue of Rs 500 crore and an offer for sale of Rs 500 crore
- IPO proceeds will fund expansion, debt reduction, and potential acquisitions
Swara Baby Products, a major contract manufacturer of disposable hygiene products in India, has received approval from the SEBI to launch a Rs 1,000-crore initial public offering, setting the stage for its proposed market debut.
The public issue will comprise a fresh issue of shares worth up to Rs 500 crore and an offer for sale of shares worth up to Rs 500 crore. Under the OFS, FirstCry parent Brainbees Solutions will sell shares worth up to Rs 300 crore, while Anadya Bon Merchari LLP will offer shares worth up to Rs 200 crore, according to the company press release.
Swara Baby plans to deploy the IPO proceeds across expansion, debt reduction and potential acquisitions. Around Rs 198.2 crore from the fresh issue is proposed for setting up a new manufacturing facility in Madhya Pradesh.
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Another Rs 100 crore will be used to repay or prepay certain borrowings.
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The company also plans to invest Rs 27.5 crore in subsidiaries Solis Hygiene, Swara Hygiene and KAEHPL to help reduce their outstanding borrowings.
Funds may additionally be used for unidentified acquisitions and general corporate purposes. Swara Baby may consider a pre-IPO placement of up to Rs 100 crore in consultation with its book-running lead managers.
Founded in 2018, Swara Baby manufactures baby diapers, adult incontinence products and feminine hygiene products for Indian and multinational customers. It also sells its own Cuddles baby diaper and Shield adult diaper brands.
According to its DRHP, Swara Baby held a 37% value-based share of India's baby diaper contract manufacturing market and 36% of the adult diaper contract manufacturing segment in FY25. The company reported revenue of Rs 1,163.9 crore in FY26, up from Rs 942.97 crore in FY25. Profit rose to Rs 95.58 crore from Rs 80.67 crore, while EBITDA increased to Rs 192.77 crore.
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