FirstCry-backed Swara Baby gets Sebi nod for ₹1,000 crore IPO

Hygiene products manufacturer Swara Baby has received Sebi approval to raise ₹1,000 crore through an initial public offering, comprising a fresh issue of up to ₹500 crore and an offer for sale of up to ₹500 crore. The Madhya Pradesh-based company filed its draft red herring prospectus (DRHP) with Sebi in July.

The OFS will see promoter Brainbees Solutions, the parent of FirstCry, sell shares worth up to ₹300 crore, while Anadya Bon Merchari LLP will offload shares worth up to ₹200 crore. The company may also consider a pre-IPO placement of up to ₹100 crore.

Swara plans to use the fresh issue proceeds primarily to expand capacity and reduce debt. It will invest ₹198.2 crore in setting up a new manufacturing facility in Madhya Pradesh and use ₹100 crore to repay or prepay borrowings.

Another ₹27.5 crore will be invested in subsidiaries Solis Hygiene, Swara Hygiene and KAEHPL for repayment or prepayment of their borrowings. The balance will be used for unidentified acquisitions and general corporate purposes.

Founded by Alok Birla, Swara began operations in 2018 as a baby diaper manufacturer and has since expanded into adult incontinence and feminine hygiene products. Its portfolio includes baby and adult diapers, sanitary napkins and panty liners.

Commands 37% baby diaper market share

According to the DRHP, Swara held a 37% market share by value in India's baby diaper contract manufacturing segment in FY25 and grew 21.9% in FY26. It also commanded a 36% share of the adult diaper contract manufacturing market and grew 24.9% during FY26.

The company operates four manufacturing facilities across 24 acres in Pithampur and Indore, with 20 production lines. Its annual capacity stands at around 2,660 million baby diapers, 253 million adult diapers and period panties, and 756 million sanitary napkins and panty liners.

FirstCry parent is key customer

Swara has also built its own brands, including Cuddles in baby diapers and Shield in adult diapers, while continuing to manufacture private-label products for large Indian and multinational customers, including Brainbees, Piramal Pharma and Himalaya Wellness.

Brainbees is not only Swara's promoter but also its largest customer. It acquired a minority stake in 2020 and steadily increased its holding through subsequent transactions before becoming a promoter in December 2025 following the conversion of its preference shares into equity. It currently owns 76.59% of Swara.

Brainbees accounted for 22.64% of Swara's revenue in FY26, highlighting both the strength and concentration of the relationship. The partnership provides Swara with predictable demand and scale, while giving FirstCry greater control over the supply of its private-label BabyHug products.

Swara has also expanded through acquisitions, including K.A. Enterprises Hygiene Private Limited, a feminine hygiene manufacturer, in December 2025, and Solis Hygiene, an adult diaper maker.

Revenue rises 23% in FY26

Financially, the company has maintained strong growth. Revenue from operations rose to ₹1,163.9 crore in FY26 from ₹942.97 crore in FY25, while profit increased to ₹95.58 crore from ₹80.67 crore. EBITDA rose to ₹192.77 crore from ₹162.72 crore.

Swara has spent the past few years preparing for that opportunity. From a single production line in 2018, it now operates four manufacturing facilities across Pithampur and Indore with 20 automated manufacturing lines spread over 24 acres. Its annual capacity has grown to around 266 crore baby diapers, 25.3 crore adult diapers and period panties, and 75.6 crore sanitary napkins and panty liners.

The addressable market for baby diapers, adult diapers and sanitary napkins was valued at ₹23,090 crore in FY25 and is projected to reach ₹42,100 crore by FY30, according to the TKC Report cited in the DRHP.

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