FirstCry-promoted Swara Baby to file DRHP for IPO in June; eyes upto Rs 1,000 cr fundraise

Swara Baby, an Indian contract manufacturer of baby diapers, adult diapers and feminine hygiene products, is planning to file its draft red herring prospectus (DRHP) this month for an initial public offering of Rs 800 crore to Rs 1,000 crore, according to people aware of the development.

The proposed issue is expected to include both a fresh issue of shares and an offer for sale by existing shareholders. JM Financial and Avendus Capital have been appointed as bankers to the issue, the people said. Emails sent to the company and the bankers seeking comment did not receive a response till the time of filing the story.

Swara Baby is led by Alok Birla, who has more than 18 years of experience in the hygiene industry. Along with Birla, FirstCry is the other promoter holding a majority stake in the company. Swara manufactures disposable consumer hygiene products across baby care, adult incontinence and feminine hygiene.

From being a single-product company in 2021, it has expanded its portfolio across seven product categories, including baby pant-style diapers, baby tape-style diapers, adult pant-style diapers, adult tape-style diapers, sanitary napkins and panty liners.

Last year, the company launched a diaper under Brainbees-owned brand BabyHug, adding what it described as a sustainability layer to the business. According to the input, it was the first company in India to launch this diaper technology, reducing the use of conventional wood pulp to 7 per cent.

It has also received BIS certification for diaper quality and safety standards. Sources said Swara has partnerships with multinational companies including Unicharm, P&G, Kimberly-Clark and Kenvue. The company started manufacturing adult incontinence products in 2023 and operates four manufacturing facilities in the Pithampur Industrial Area and Indore in Madhya Pradesh.

Past public filings show Swara Baby posted a CAGR of more than 30 per cent over the three-year period through FY25. Revenue rose to about Rs 943 crore in FY25 from Rs 545 crore in FY23, while profit after tax increased to Rs 81 crore from Rs 26 crore. PAT margins expanded to 8.56 per cent from 4.84 per cent.

Industry estimates place India's diaper market at $1.83 billion in 2025, with projections of $3.18 billion by 2034, while the adult diaper segment is expected to grow at a double-digit CAGR through 2030. There are no like-for-like listed peers for Swara Baby because of its position as a contract manufacturer across baby, adult and feminine hygiene categories.

FirstCry had earlier announced the acquisitions of KA Hygiene and Solis Hygiene in December 2025, and said Swara Baby had incorporated Swara Corp in the US to trade in diapers and allied hygiene products.

Two people aware of the development said Swara is among the country's largest contract manufacturers in baby and adult diapers, with a market share of over 30 per cent, though they were not sure about the sanitary napkins segment. They added that the company's focus is expected to remain on white labelling, while export exposure is limited at present but could grow after its entry into the US market.