India’s largest disposable hygiene products contract manufacturer plans to expand production with a new Madhya Pradesh facility and reduce debt through IPO proceeds.
Key Highlights
- Swara Baby files DRHP with SEBI for a ₹1,000 crore IPO.
- IPO includes ₹500 crore fresh issue and ₹500 crore Offer for Sale (OFS).
- Fresh proceeds to fund a new manufacturing plant in Madhya Pradesh, debt repayment and acquisitions.
- Company is India’s largest contract manufacturer of disposable hygiene products by value in FY25.
- May consider a pre-IPO placement of up to ₹100 crore.
Swara Baby, India’s largest contract manufacturer of disposable hygiene products by value in FY25, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise ₹1,000 crore through an initial public offering (IPO).
The IPO consists of a fresh issue of equity shares worth up to ₹500 crore and an Offer for Sale (OFS) of up to ₹500 crore by existing shareholders.
Under the OFS, Brainbees Solutions Limited will sell shares worth up to ₹300 crore, while Anadya Bon Merchari LLP will offload shares worth up to ₹200 crore.
Swara Baby manufactures a wide range of disposable hygiene products, including baby diapers, adult diapers and sanitary napkins, catering to multiple brands through contract manufacturing. The company has emerged as the largest player in India’s contract manufacturing segment for disposable hygiene products during FY25.
According to the draft papers, the company plans to utilise the fresh issue proceeds for expanding its manufacturing capacity, reducing debt and supporting future growth initiatives.
Around ₹198.2 crore will be invested in setting up a new manufacturing facility in Madhya Pradesh, while ₹100 crore will be used to repay or prepay certain outstanding borrowings.
The company also plans to invest ₹27.5 crore in its subsidiaries—Solis Hygiene, Swara Hygiene and KAEHPL—to help them repay existing loans. The remaining funds will be used for general corporate purposes and pursuing inorganic growth opportunities through future acquisitions.
Swara Baby may also undertake a pre-IPO placement of up to ₹100 crore before the public issue, in consultation with its book-running lead managers.
The IPO is being managed by JM Financial Limited and Avendus Capital Private Limited.
The proposed public issue comes at a time when demand for disposable hygiene products in India continues to grow, driven by rising health awareness, increasing urbanisation, higher disposable incomes and expanding penetration of baby care, women’s hygiene and adult incontinence products across the country.
