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Swara Baby Plans Investment

Indian hygiene manufacturer is planning an IPO

Swara Baby Care is expanding its manufacturing footprint.

India’s Swara Baby Products is investing $58 million in a new manufacturing facility in Madhya, Padesh, India to expand production capacity across its baby diaper, adult incontinence and sanitary napkins business. About one-third of the investment is expected to be funded through the net proceeds of its initial public offering.

The new facility will add annual capacity of nearly 1,500 million baby diapers, 250 million adult diapers and 190 million sanitary napkins. It will make both pant-style and tape style diapers across sizes ranging from newborn and small to XL and XXL.

Since 2018, Swara Baby has expanded its manufacturing footprint from one line to 20, including 12 baby diaper lines, four adult incontinence lines and four sanitary napkin and panty liner lines. The company currently operates four manufacturing sites across Pithampur and Indore and is pursuing growth across international markets, particularly the Middle East and North Africa and the Asia-Pacific.

Swara Baby care announced in July it had filed a prospectus for an initial public 

Swara Baby Products, manufacturer of disposable hygiene products, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO).

The proposed IPO comprises a fresh issue of equity shares worth up to Rs 500 crore and an offer for sale (OFS) of up to Rs 500 crore by existing shareholders.

The OFS includes shares worth Rs 300 crore by Brainbees Solutions Ltd (FirstCry), which held a 76.59% stake in Swara Baby at the time of the DRHP filing, and Rs 200 crore by promoter entity Anadya Bon Merchari LLP.

According to the DRHP, the company plans to use Rs 198.2 crore from the fresh issue to set up a new manufacturing facility in Madhya Pradesh. Another Rs 100 crore will be used to repay certain borrowings, while Rs 27.5 crore will be infused into its subsidiaries, Solis Hygiene, Swara Hygiene, and KAEHPL for repayment of their debt. The remaining proceeds will be used for inorganic growth through acquisitions and general corporate purposes.

JM Financial and Avendus Capital are the book-running lead managers to the issue, while MUFG Intime India Private Limited is the registrar to the issue.

The company may also consider a pre-IPO placement of up to Rs 100 crore in consultation with the book-running lead managers. If such a placem

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