Swara Baby Products Files ₹1,000 Crore IPO Papers; FirstCry Parent to Offload ₹300 Crore Stake

Swara Baby Products, one of India's leading manufacturers of disposable hygiene products and a subsidiary of Brainbees Solutions Ltd (FirstCry), has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to launch an Initial Public Offering (IPO) worth ₹1,000 crore.

The proposed 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. As part of the OFS, FirstCry's parent company Brainbees Solutions plans to offload shares worth ₹300 crore, while promoter entity Anadya Bon Merchari LLP will sell shares worth ₹200 crore.

The IPO comes as Swara Baby Products continues to strengthen its position in India's rapidly expanding hygiene products market, backed by strong revenue growth, improving profitability, and strategic capacity expansion plans.

Swara Baby Products IPO Details

According to the DRHP, the IPO will combine a fresh issue aimed at funding future growth with an Offer for Sale that will provide partial exits to existing shareholders.

IPO Snapshot

The company may also undertake a pre-IPO placement of up to ₹100 crore before the issue opens. If completed, the size of the fresh issue will be reduced accordingly.

Company Financials

Swara Baby Products has delivered healthy financial growth over the past year, driven by rising demand across baby care, feminine hygiene, and adult incontinence products.

The company reported double-digit growth in both revenue and profitability during FY26, reflecting improving operating performance and expanding manufacturing capabilities.

FY26 Financial Performance

The strong financial performance provides a solid backdrop as the company prepares to tap the public markets.

How the IPO Proceeds Will Be Utilised

Swara Baby Products intends to deploy the proceeds from the fresh issue toward capacity expansion, debt reduction, subsidiary support, and future acquisitions.

A significant portion of the funds will be invested in establishing a new manufacturing facility in Madhya Pradesh, aimed at increasing production capacity to meet growing domestic and international demand.

The company also plans to strengthen its balance sheet by repaying borrowings while supporting its subsidiaries through debt repayment.

Planned Utilisation of Fresh Issue Proceeds

The expansion strategy highlights the company's focus on scaling operations while maintaining financial discipline.

FirstCry to Partially Monetise Investment

One of the notable aspects of the IPO is the partial stake sale by Brainbees Solutions Ltd, the parent company of FirstCry.

At the time of filing the DRHP, Brainbees Solutions held a 76.59% stake in Swara Baby Products. Through the IPO, the company plans to sell shares worth ₹300 crore, while continuing to remain the controlling shareholder after the public issue.

The OFS provides liquidity to existing investors while ensuring that the company continues to benefit from FirstCry's strategic support and distribution ecosystem.

About Swara Baby Products

Founded in 2016, Swara Baby Products has rapidly emerged as one of India's largest manufacturers of disposable hygiene products.

The company manufactures a wide range of products, including:

• Baby diapers
• Adult diapers
• Sanitary napkins
• Disposable underpads
• Wet wipes

Apart from producing products under its own brands, Swara Baby also operates as a large contract manufacturer for several domestic and international consumer brands.

According to the company, it was India's largest contract manufacturer of disposable hygiene products by value in FY25, serving customers across the baby care, feminine hygiene, and adult incontinence segments.

Strategic Expansion Through Acquisition

Swara Baby Products has also pursued inorganic growth to strengthen its market position.

In December 2025, Brainbees Solutions, through Swara Baby Products, acquired 100% of KA Hygiene in a share swap transaction valued at ₹57.74 crore.

The acquisition is expected to enhance manufacturing capabilities, diversify the product portfolio, and strengthen the company's presence in India's fast-growing hygiene products industry.

Market Analysis

India's disposable hygiene products market is witnessing structural growth, driven by rising healthcare awareness, increasing disposable incomes, higher female workforce participation, expanding e-commerce penetration, and improving rural consumption.

Demand across baby diapers, feminine hygiene products, adult incontinence solutions, and wet wipes has grown steadily over the past decade, while contract manufacturing has emerged as a key segment as consumer brands increasingly outsource production to specialised manufacturers.

Swara Baby Products appears well positioned to benefit from these long-term industry trends. Its leadership in contract manufacturing, diversified product portfolio, strategic backing from FirstCry, and planned manufacturing expansion could support future growth. Additionally, the proposed Madhya Pradesh facility is expected to enhance production capacity, improve operational efficiencies, and strengthen the company's ability to serve both domestic and international markets.

What Investors Should Watch

As Swara Baby Products moves closer to its public listing, investors will closely monitor:

• SEBI's approval of the DRHP
• Progress on the proposed Madhya Pradesh manufacturing facility
• Growth in revenue and profit after capacity expansion
• Performance of the contract manufacturing business
• Integration benefits from the KA Hygiene acquisition
• Details of the pre-IPO placement, if undertaken

These developments will play an important role in shaping the company's long-term growth outlook after listing.

Key Takeaways

What is the size of Swara Baby Products' IPO?

The company has filed papers for an ₹1,000 crore IPO, comprising a ₹500 crore fresh issue and a ₹500 crore Offer for Sale (OFS).

How much stake is FirstCry selling?

Parent company Brainbees Solutions (FirstCry) plans to sell shares worth ₹300 crore through the Offer for Sale.

How will the IPO proceeds be used?

The fresh issue proceeds will primarily fund a new manufacturing facility in Madhya Pradesh, repay borrowings, support subsidiaries through debt repayment, finance acquisitions, and meet general corporate requirements.

What products does Swara Baby Products manufacture?

The company manufactures baby diapers, adult diapers, sanitary napkins, disposable underpads, and wet wipes for both its own brands and contract manufacturing clients.

How did Swara Baby Products perform in FY26?

The company reported ₹1,164 crore in operating revenue, up 23.4% year-on-year, while net profit increased 18.5% to ₹96 crore.