New Delhi, June 12 -- Nobel Hygiene Ltd, the maker of diapers under the Friends and Teddy brands, is set to file its draft red herring prospectus soon for an initial public offering and has appointed at least three bankers to manage the process, two people aware of the development told VCCircle.
The company, which counts healthcare-focused private equity firm Quadria Capital and consumer-focused venture capital firm Sixth Sense Venture among its investors, is likely to file the draft documents by August-September, one of the persons said, asking not to be named.
The company has appointed ICICI Securities, IIFL Capital and Motilal Oswal Financial as bankers for managing the issue, the two people said.
A company spokesperson said Nobel Hygiene regularly evaluates various strategic and capital market opportunities in line with the company's long-term growth plans. While the spokesperson did not comment on the DRHP filing, he said that the company engages with external advisors from time to time as part of this process.
ICICI Securities, Motilal Oswal Financial and IIFL Capital did not reply to queries sent by VCCircle.
One of the persons cited above said the IPO size could be around Rs 800-1,000 crore ($84-105 million), with 70% of the issue comprising the offer for sale window. This person also said that Nobel's three main investors-Quadria, Sixth Sense and Neo Asset Management-are likely to trim their holdings via the offer for sale.
Quadria Capital invested in the company in 2021, with Sixth Sense joining the cap table the following year. Last year, the asset management arm of Mumbai-based Neo Group invested Rs 170 crore in Nobel Hygiene through a mix of primary and secondary transactions.
The second person added that the IPO is likely to value the company at approximately Rs 4,000 crore.
Founded in 2000 by Johari Kamal, Nobel Hygiene makes adult diapers, maternity pads, adult pull-ups, underpads, nappy pads, and baby diapers. It markets its baby diapers under the Teddy and Snuggy brands, and adult incontinence products under the Friends brand. Diapers constitute most of its revenue, with 50% coming from the adult-care brands and the remaining from the baby-care line. Its Friends brand commands around 60% of the market share in India. The brand has a distribution network of over 1,000 dealers and exports to over 20 countries.
In FY25, Nobel Hygiene's consolidated revenue inched up to Rs 739 crore from Rs 728.5 crore the year before. It swung to a small net profit from a loss in previous years, according to VCCEdge. The company is currently clocking annualised revenue of over Rs 1,000 crore, VCCircle has gathered. Company executives that VCCircle had spoken with in March this year expected a double-digit growth with rising demand and an expanding silver economy.
Published by HT Digital Content Services with permission from VC Circle.