Swara Baby, India's largest contract manufacturer of disposable hygiene products by value in FY25, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) to raise Rs 1,000 crore through 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. The OFS includes shares aggregating up to Rs 300 crore by promoter-selling shareholder Brainbees Solutions Limited and up to Rs 200 crore by Anadya Bon Merchari LLP.The company plans to utilise the net proceeds from the fresh issue to establish a new manufacturing facility in Madhya Pradesh with an investment of Rs 198.2 crore, repay or prepay certain borrowings amounting to Rs 100 crore, and invest Rs 27.5 crore in subsidiaries—Solis Hygiene, Swara Hygiene, and K.A. Enterprises Hygiene Private Limited (KAEHPL)—for debt repayment. The remaining proceeds will be used for inorganic growth opportunities through unidentified acquisitions and general corporate purposes. The company may also undertake a pre-IPO placement of up to Rs 100 crore in consultation with the book-running lead managers.Founded in 2018, Swara Baby is a specialised, independent manufacturer of disposable hygiene products catering to the baby care, adult incontinence, and feminine hygiene segments. The company primarily operates as a contract manufacturer, producing products for leading consumer brands while also marketing its own brands, Cuddles (baby diapers) and Shield (adult diapers), through online and modern retail channels.Swara Baby has built long-standing relationships with customers including its corporate promoter Brainbees Solutions Limited, Piramal Pharma Limited, and Himalaya Wellness Company. In December 2025, the company strengthened its presence in the feminine hygiene segment through the acquisition of K.A. Enterprises Hygiene Private Limited (KAEHPL).According to the DRHP, Swara Baby is India's largest contract manufacturer of disposable hygiene products by value in FY25, spanning baby diapers, adult diapers, and sanitary napkins. The company also leads the baby diaper contract manufacturing segment with a 37% market share by value in FY25 and recorded 21.9% year-on-year growth in FY26. In the adult diaper contract manufacturing segment, it held an estimated 36% market share in FY25 and posted 24.9% year-on-year growth in FY26.The company operates four manufacturing facilities spread across 24 acres in Pithampur and Indore, Madhya Pradesh, supported by a nationwide warehousing network. Since commencing operations, Swara Baby has expanded from a single manufacturing line to 20 production lines, including 12 for baby diapers, four for adult incontinence products and period panties, and four for sanitary napkins and panty liners.Its installed annual production capacity stands at approximately 2.66 billion baby diapers, 253 million adult diapers and period panties, and 756 million sanitary napkins and panty liners. The company also operates an in-house research and development centre with a 13-member team focused on product innovation, quality enhancement, and sustainability initiatives. Among its key developments is a plant-based "Tree Free" diaper, for which a patent application is currently under review, along with ultra-thin sanitary napkins.Financially, Swara Baby reported strong growth in FY26, with revenue from operations rising to Rs 1,163.9 crore, compared with Rs 942.97 crore in FY25 and Rs 749.96 crore in FY24. Profit after tax stood at Rs 95.58 crore in FY26, up from Rs 80.67 crore in FY25. EBITDA increased to Rs 192.77 crore from Rs 162.72 crore in the previous fiscal.Baby diapers remained the company's largest revenue contributor in FY26, generating Rs 911.81 crore, accounting for 79.06% of product sales. Adult incontinence products contributed Rs 185.35 crore (16.07%), while feminine hygiene products generated Rs 31.35 crore (2.72%). Together, these categories represented 97.85% of total product sales.Revenue from Swara Baby's owned Cuddles brand stood at Rs 204.18 crore, representing 22.39% of the company's baby diaper revenue, while the Shield brand generated Rs 38.45 crore, accounting for 20.74% of revenue from adult diapers.According to the TKC Report, baby diapers and feminine hygiene products together accounted for over 92% of India's hygiene products market in FY25, with shares of 52.1% and 40.1%, respectively. The overall hygiene market is expected to expand at a 12.7% compound annual growth rate (CAGR) across key product categories, driven by rising consumer awareness, increasing disposable incomes, and expanding penetration of hygiene products.Also read:SBI Mutual Fund planning IPO launch on July 13, to raise $1.2 billionWith its leadership in contract manufacturing, diversified product portfolio, integrated manufacturing facilities, and continued investments in capacity expansion and innovation, Swara Baby aims to capitalize on the long-term growth potential of India's disposable hygiene products market.JM Financial Limited and Avendus Capital Private Limited are the book-running lead managers to the issue.