Swara Baby Products IPO: FirstCry-Backed ₹1,000 Crore Issue Explained
Inside the DRHP: issue structure, use of funds, financials and FirstCry's OFS
Swara Baby Products, the FirstCry-backed hygiene manufacturer, has filed its DRHP with SEBI for a ₹1,000 crore IPO. The issue splits into a ₹500 crore fresh issue and a ₹500 crore Offer for Sale. FirstCry's parent, Brainbees Solutions, owns 76.59% and will sell up to ₹300 crore. The price band and dates are not out yet, as only the draft papers have been filed.
India's IPO market stays busy, but not every issue tells an interesting business story. The Swara Baby Products IPO is one that does. While headlines focus on FirstCry's parent selling shares, the draft red herring prospectus (DRHP) reveals how a young company built a large presence in India's hygiene manufacturing industry. Here is what investors should know from the Swara Baby Products IPO papers.
Issue size and structure
Swara Baby Products has filed its DRHP with the Securities and Exchange Board of India (SEBI) to raise ₹1,000 crore. The issue has two parts:
- Fresh issue: new equity shares worth ₹500 crore.
- Offer for Sale (OFS): existing shares worth ₹500 crore.
Under the OFS, Brainbees Solutions (FirstCry's parent) will sell shares worth up to ₹300 crore. Anadya Bon Merchari LLP plans to sell up to ₹200 crore. The company may also do a pre-IPO placement of up to ₹100 crore. If it does, the fresh issue shrinks by the same amount. If you are new to these terms, see how an IPO works and how to apply.
Where will the IPO proceeds be used?
Only the fresh issue money comes to the company. An OFS goes to the selling shareholders. The DRHP says the fresh funds will support growth, not just clean up the balance sheet. The planned use is:
- ₹198.2 crore for a new manufacturing facility in Pithampur, Madhya Pradesh.
- ₹100 crore to repay or prepay borrowings.
- ₹27.5 crore into subsidiaries Solis Hygiene, Swara Hygiene and K.A. Enterprises Hygiene to clear their dues.
- The rest for acquisitions and general corporate purposes.
In short, the company wants to add capacity and grow by buying other businesses.
What does Swara Baby Products do?
Incorporated in 2016, Swara Baby makes disposable hygiene products. It started with one product and now covers seven segments. These include baby pant and tape diapers, adult pant and tape diapers, sanitary napkins and panty liners.
Contract manufacturing is its core business. The company makes products that other brands sell. It also sells under its own brands: Cuddles for baby diapers and Shield for adult diapers. Its clients include Brainbees Solutions (FirstCry), Piramal Pharma and Himalaya Wellness.
A strong grip on contract manufacturing
The DRHP shows how large Swara Baby is in this behind-the-scenes industry. During FY25, by value, it held:
- 37% share in baby diaper contract manufacturing.
- 36% share in adult diaper contract manufacturing.
It calls itself the largest contract manufacturer in India's hygiene industry in FY25. It runs four plants in Pithampur and Indore. Its yearly capacity is about 266 crore baby diapers, 25.3 crore adult diapers, and 75.6 crore sanitary napkins and panty liners.
How much of Swara Baby Products does FirstCry's parent, Brainbees Solutions, own before the IPO?
Financial performance
Swara Baby has grown steadily. Its revenue and profit both rose in the latest year:
- FY26: revenue ₹1,163.9 crore, profit after tax ₹95.58 crore.
- FY25: revenue ₹942.97 crore, profit after tax ₹80.67 crore.
Revenue grew about 23.4%, and profit rose about 18.5% over the year. Baby diapers were the biggest segment at 79% of product sales in FY26. Adult incontinence products made up 16%.
Expansion beyond manufacturing
The company has been busy on the deals front. In December 2025, it acquired K.A. Enterprises Hygiene to grow in feminine hygiene. Around the same time, Brainbees announced buys of KA Hygiene and Solis Hygiene. Swara Baby also set up Swara Corp in the United States to trade diapers abroad. It launched a diaper under FirstCry's BabyHug brand that cuts wood pulp use to 7%, which it calls a first in India.
FirstCry's stake and the OFS
Brainbees Solutions owns 76.59% of Swara Baby, its largest shareholder. Through the OFS, it plans to sell shares worth up to ₹300 crore and book part of its gains. On the market, Brainbees shares traded near ₹226 on the afternoon of July 2, 2026, down about 0.75% on the day. The stock has fallen over 21% so far in 2026.
Remember that a DRHP is only a draft. The price band, lot size and dates come later, in the red herring prospectus. Until then, investors can study the business but cannot apply. Track the allotment process and understand what grey market premium means before the issue opens.
Sources: Swara Baby Products DRHP filed with SEBI (sebi.gov.in), and NSE (nseindia.com) for Brainbees Solutions share data. Figures as of July 2026.