HR Hygiene Products will launch its SME IPO on July 29 to raise Rs 53.95 crore. The funds will primarily support a new manufacturing plant in Gujarat and debt reduction. Investors should note the offer includes both a fresh issue of shares and an offer-for-sale by promoters, with a listing expected on the BSE SME platform by August 5.
Detailed Coverage
HR Hygiene Products, a manufacturer of personal hygiene items including sanitary napkins and diapers, has announced the details for its upcoming Initial Public Offering (IPO) on the BSE SME platform. The company plans to raise Rs 53.95 crore through this offering, which opens for public subscription on July 29 and closes on July 31. The price band for the shares has been set between Rs 83 and Rs 88 per share.
The public issue consists of two main parts. A fresh issuance of 49.05 lakh equity shares is expected to raise Rs 43.17 crore, while the promoters are offloading 12.25 lakh equity shares through an offer-for-sale (OFS) to raise Rs 10.78 crore. For those interested in the anchor investor portion, that window opens on July 28. Following the closure of the subscription, the company expects to finalize share allotments by August 3, with trading on the BSE SME platform scheduled for August 5.
Expansion and Debt Strategy
A significant portion of the funds from the fresh issue, specifically Rs 31.36 crore, is earmarked for the construction of a second manufacturing facility in Rajkot, Gujarat. This plant will focus on expanding the company’s diaper production capacity. This expansion follows high demand for its existing products; the company’s current facility recorded an 85 percent capacity utilization in FY25, with total production volume rising to 18.15 crore pieces compared to 11.40 crore pieces in FY24. In addition to expansion, the company intends to use Rs 3.56 crore of the proceeds to pay down existing debt, which could help lower interest costs and improve its balance sheet.
Financial Performance Overview
The company has reported consistent growth over the last two fiscal years. In FY25, revenue reached Rs 130.7 crore, marking a 14.04 percent increase from the Rs 114.6 crore reported in FY24. Profitability also improved, with net profit rising to Rs 11.4 crore in FY25 from Rs 9.1 crore in the previous year. Operating profit (EBITDA) grew by 15.7 percent to Rs 17.1 crore during the same period, leading to an EBITDA margin of 8.73 percent.
Investors tracking this IPO should monitor the company's ability to maintain these margins as it scales production at the new Rajkot site. Because this is an SME IPO, liquidity in the stock after listing may be different compared to mainboard companies. Potential investors should also keep an eye on how the management executes the project timeline for the new facility, as any delays in setting up the new capacity could impact future revenue growth. Furthermore, as the company operates in a competitive consumer goods sector, it will need to continue balancing its marketing and distribution efforts for its brands—Femiss, Womanica, ElderFit, and Bloom Baby—against larger, established players in the hygiene space.