Swara Baby Products gets SEBI’s nod to raise Rs 1,000 crore through IPO

Swara Baby Products, a contract manufacturer of baby diapers, adult diapers and feminine hygiene products backed by FirstCry, has received the Securities and Exchange Board of India’s (SEBI) approval to raise Rs 1,000 crore through an initial public offering (IPO).The proposed IPO comprises a fresh issue of equity shares aggregating up to Rs 500 crore and an offer for sale (OFS) valued at Rs 500 crore by promoters. The OFS includes the sale of shares worth up to Rs 300 crore by Brainbees Solutions and up to Rs 200 crore by Anadya Bon Merchari LLP. As per the draft papers, the company proposes to utilise the net proceeds from the fresh issue to set up a new manufacturing facility in Madhya Pradesh with an allocation of Rs 198.2 crore, repay or prepay borrowings amounting to Rs 100 crore, and invest Rs 27.5 crore in subsidiaries Solis Hygiene, Swara Hygiene and K.A. Enterprises Hygiene (KAEHPL) for repayment of their outstanding borrowing. Additionally, funds will be used to pursue inorganic growth through acquisitions and for general corporate purposes. JM Financial and Avendus Capital are the book-running lead managers to the issue. Founded in 2018, Swara Baby manufactures disposable hygiene products across baby care, adult incontinence and feminine hygiene segments. Its portfolio includes baby diapers, adult diapers, sanitary napkins and panty liners, primarily manufactured under contract for consumer brands.