Swara Baby gets Sebi nod for Rs 1,000 crore IPO
Swara Baby Products has received regulatory approval from the Securities and Exchange Board of India (Sebi) to launch its Rs 1,000 crore initial public offering, marking a significant milestone toward the company's public listing. Described as India's largest contract manufacturer by value in FY25 of disposable hygiene products, Swara Baby manufactures baby diapers, adult diapers, and sanitary napkins. The IPO will comprise a fresh issue of shares worth up to Rs 500 crore and an offer for sale of up to Rs 500 crore, with promoter Brainbees Solutions selling shares worth Rs 300 crore and Anadya Bon Mercari LLP selling Rs 200 crore worth of shares.
Founded in 2018, Swara Baby has expanded from a baby diaper manufacturer into a specialized disposable consumer hygiene company with products across baby care, adult incontinence, and feminine hygiene categories. The company operates four manufacturing facilities across 24 acres in Pithampur and Indore in Madhya Pradesh, and has built relationships with major customers including Brainbees Solutions, Piramal Pharma, and Himalaya Wellness. It also sells its own brands Cuddles (baby diapers) and Shield (adult diapers) through online commerce and modern trade channels.
Swara Baby plans to deploy net IPO proceeds of Rs 198.2 crore to establish a new manufacturing facility in Madhya Pradesh, allocate Rs 100 crore for repayment of borrowings, and invest Rs 27.5 crore in subsidiaries for debt repayment. Additional proceeds will be directed toward inorganic growth through acquisitions and general corporate purposes. The company may also consider a pre-IPO placement of Rs 100 crore.
