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 funds through an initial public offering (IPO). According to the latest reports, the proposed IPO comprises a fresh issue of equity shares worth up to ₹500 crore and an offer for sale (OFS), taking the total issue size to ₹1,000 crore. The OFS includes the sale of shares worth up to ₹300 crore by Brainbees Solutions Ltd., the parent company of FirstCry, which currently owns a 76.59% stake in Swara Baby, and up to ₹200 crore by Anadya Bon Merchari LLP. As per the DRHP, JM Financial Limited and Avendus Capital Private Limited are serving as the book-running lead managers to the issue, with shares expected to be listed on NSE and BSE. The company may also consider a pre-IPO placement of shares aggregating up to ₹100 crore, which would reduce the size of the fresh issue accordingly. MUFC Intime India is serving as the registrar to the offer.
Brainbees Solutions has approved a ₹300 crore investment in Swara Baby Products to strengthen its market position and enhance its captive manufacturing and distribution capabilities. As reported by multiple sources, this strategic deployment of post-IPO liquidity represents a major shift from third-party reliance to deeper equity participation in key product suppliers. The investment is part of FirstCry's broader strategy to move beyond being just a marketplace to a full-stack brand owner, with the company prioritizing backward integration to gain better control over product quality and margins. The ₹300 crore commitment signifies high confidence in Swara Baby's growth trajectory and its role in the FirstCry ecosystem, with the retail and e-commerce sector likely viewing this as a consolidation signal. For investors, this deployment of cash into high-growth subsidiaries could serve as a catalyst for valuation re-rating, provided the integration yields synergistic benefits.
As reported by CNBC TV18, Swara Baby commenced operations in 2018, specialising in manufacturing disposable consumer hygiene products across baby care, adult and feminine hygiene product categories. The company operates four manufacturing facilities across 24 acres in Pithampur and Indore, Madhya Pradesh, supported by warehouses across India. Since 2021, the company has expanded from a single-product company to a portfolio spanning seven categories, including baby pant-style diapers, baby tape-style diapers, adult pant-style diapers, adult tape-style diapers, sanitary napkins and panty liners. Founded in 2018, the company holds a 37% market share in baby diaper contract manufacturing and a 36% share in adult diaper contract manufacturing by value during FY25, according to the draft papers. The company supplies products to customers including Brainbees Solutions, Piramal Pharma and Himalaya Wellness Company, while also marketing its own brands Cuddles and Shield through online and modern retail channels. In December 2025, it acquired K.A. Enterprises Hygiene, a manufacturer of feminine hygiene products, expanding its manufacturing footprint to four facilities across Pithampur and Indore in Madhya Pradesh. Since commencing operations, Swara Baby has expanded from a single manufacturing line to 20 production lines, including 12 for baby diapers, four for adult incontinence products and period panties, and four for sanitary napkins and panty liners.
For FY26, Swara Baby reported revenue from operations of ₹1,163.9 crore, compared with ₹942.97 crore in FY25 and ₹749.96 crore in FY24, representing significant growth in business scale. The company's profit after tax stood at ₹95.58 crore in FY26 against ₹80.67 crore in the previous financial year, demonstrating improved operational efficiency. EBITDA increased to ₹192.77 crore from ₹162.72 crore in the previous fiscal. Baby diapers remained the largest revenue contributor, accounting for 79.06% of product sales in FY26, with baby diapers contributing ₹911.81 crores. According to the draft red herring prospectus, the net proceeds from the IPO will be utilized for part-financing capital expenditure requirement towards establishing a new manufacturing plant in Madhya Pradesh with an investment of ₹198.2 crore, repayment or prepayment of borrowings worth ₹100 crore, investment of ₹27.5 crore in subsidiaries Solis Hygiene, Swara Hygiene and KAEHPL for debt clearance, and inorganic growth through acquisitions and general corporate purposes. The company may also undertake a pre-IPO placement of shares aggregating up to ₹100 crore, which would reduce the size of the fresh issue accordingly. The company expects to receive benefits from listing including enhancement of its company's brand name and creation of a public market for the equity shares in India.
According to the TKC Report, baby diapers and feminine hygiene products together accounted for over 92% of India's hygiene products market in FY25, with shares of 52.1% and 40.1% respectively. The overall hygiene market is expected to expand at a 12.7% compound annual growth rate (CAGR) across key product categories, driven by rising consumer awareness, increasing disposable incomes, and expanding penetration of hygiene products. Swara Baby recorded strong growth in FY26, with baby diapers contributing ₹911.81 crores (79.06% of total sales) and adult incontinence products contributing ₹185.35 crore (16.07%). The company's owned brands Cuddles and Shield generated ₹204.18 crore and ₹38.45 crore respectively, representing 22.39% and 20.74% of their respective product segments. The company also operates an in-house research and development centre with a 13-member team focused on product innovation, quality enhancement, and sustainability initiatives, including a plant-based "Tree Free" diaper for which a patent application is currently under review.
