Swara Child Merchandise, a Madhya Pradesh-based contract producer of diapers and sanitary napkins owned by FirstCry mother or father Brainbees Options, has obtained approval from the Securities and Change Board of India (SEBI) for its proposed Rs 1,000 crore preliminary public providing (IPO).

SEBI issued its closing remark on the corporate’s draft papers on Tuesday, in keeping with the regulator’s processing standing replace. Swara Child had filed its draft purple herring prospectus (DRHP) on 2 July.

The IPO includes a contemporary subject of shares value as much as Rs 500 crore and a suggestion on the market (OFS) of as much as Rs 500 crore. Brainbees will promote shares value as much as Rs 300 crore, and Anadya Bon Merchari LLP, one other promoter, will promote shares value as much as Rs 200 crore. The shares have a face worth of Rs 2 every.

The corporate can also contemplate a pre-IPO placement of as much as Rs 100 crore. JM Monetary and Avendus Capital are the book-running lead managers. The value band and subject dates are but to be introduced.

The place the cash will go

Of the contemporary subject proceeds, Rs 198.2 crore can be spent on a brand new manufacturing facility in Madhya Pradesh, and Rs 100 crore will go in the direction of repaying or prepaying sure borrowings.

One other Rs 27.5 crore can be invested in subsidiaries Solis Hygiene, Swara Hygiene and Ok.A. Enterprises Hygiene Non-public Restricted (KAEHPL) to allow them to repay debt. The remainder will fund unidentified acquisitions and normal company functions.

The corporate’s complete borrowings stood at Rs 443 crore on the finish of FY26, up from Rs 354.82 crore a yr earlier and Rs 260 crore in FY24, in keeping with DRHP figures.

What Swara Child does

Swara Child was based in 2018 by Alok Birla, Rahul Bubna and Ritum Jain. The corporate makes child pant-style and tape-style diapers, grownup diapers, sanitary napkins and panty liners, principally for different manufacturers.

It manufactures FirstCry’s Babyhug diapers, Piramal Pharma’s Little’s diapers and diapers for Himalaya Wellness. It additionally sells its personal merchandise beneath the Cuddles model in child diapers and the Protect model in grownup diapers.

The corporate runs 4 manufacturing amenities in Pithampur and Indore in Madhya Pradesh, with 20 manufacturing strains. Its annual capability is about 2.66 billion child diapers, 253 million grownup diapers and interval panties, and 756 million sanitary napkins and panty liners.

In keeping with its DRHP, Swara Child was India’s largest hygiene contract producer by worth in FY25 throughout child diapers, grownup diapers and sanitary napkins. It held a 37% share of the newborn diaper contract manufacturing market and an estimated 36% of the grownup diaper phase. Child diapers account for about 79% of its income, and grownup diapers about 16%.

Swara Child has been increasing past its house market and classes. The corporate arrange wholly owned subsidiary Swara Corp in Delaware in December 2025 and later that month acquired female hygiene maker KAEHPL.

Brainbees said in a regulatory filing in June that the deadline for Swara Child to pay the preliminary subscription in Swara Corp had been prolonged to 31 December 2026 due to procedural delays.

The financials

Swara Child’s income from operations grew about 23% to Rs 1,163.9 crore in FY26 from Rs 942.97 crore in FY25. Revenue rose about 18% to Rs 95.58 crore from Rs 80.67 crore.

Revenue had dipped in FY25 from Rs 93.97 crore in FY24, in keeping with the Chittorgarh information. EBITDA was Rs 192.77 crore in FY26, in contrast with Rs 162.72 crore in FY25. That determine contains different revenue. Excluding different revenue, EBITDA was about Rs 144.23 crore, Brainbees mentioned in an alternate submitting.

FirstCry is proprietor and largest buyer

Brainbees first invested in Swara Child in 2020, placing in Rs 90.6 crore for a 53.45% stake on a totally diluted foundation. It later purchased extra shares from present holders and owned 76.59% when the DRHP was filed.

Anadya Bon Merchari held 7.51%, Sangita Birla 4.88% and Udit Alok Birla 4.8%. Brainbees can be Swara Child’s single largest buyer.

The DRHP exhibits Swara Child earned Rs 263.46 crore from Brainbees in FY26, or 22.64% of income from operations, down from 27.03% in FY24. The highest 10 clients collectively contributed 80.31% of income in FY26.

The doc additionally lists this focus as a key threat, together with the truth that all 4 of its crops are in a single state.

Explaining the itemizing in a submitting to the exchanges on 2 July, Brainbees mentioned Swara Child had “charted a really totally different long run imaginative and prescient as in comparison with the unique alignment with Brainbees”, because it expanded into extra product strains, channels and worldwide markets.

“Partial monetization of a profitable funding permits us to crystallize worth, enhance return on funding and preserve flexibility for future strategic alternatives,” Brainbees said, including that Swara Child would stay its subsidiary after the IPO.

The corporate mentioned Brainbees’ administration has no position in working Swara Child, which is led by Alok Birla and his son Udit Birla. Supam Maheshwari and Gautam Sharma have been appointed to Swara Child’s board as non-executive administrators on behalf of Brainbees, which is a promoter of the corporate.

Brainbees mentioned its commerce with Swara Child has been at arm’s size and can stay so after the itemizing. The Brainbees board had accredited its participation within the OFS on 1 July, in keeping with a separate submitting.