Nobel Hygiene, which has received support from Quadria Capital, has filed an prospectus draft for an Initial Public Offering (IPO). The goal of this offering is to raise new capital amounting to 150 crore rupees, as well as to offload secondary shares.
The funds raised are intended by the company to be used for increasing production capacity at its Halol facility and repaying existing bank debts. The IPO includes a primary issuance of up to 150 crore rupees of equity capital with a nominal value of 2 rupees per share, along with an Offer for Sale (OFS) of up to 1.55 crore shares.
In consultation with leading underwriters, the company may also consider a private placement of up to 30 crore rupees (which does not exceed 20% of the primary issue), which would lead to a corresponding reduction in the size of the primary issue.
Since Nobel Hygiene did not meet the SEBI ICDR Regulation 6(1)(b) threshold for average revised consolidated operating income of at least 15 crore rupees over the previous three years, it is listing under Regulation 6(2). Consequently, the company is obligated to allocate at least 75% of the net offer to Qualified Institutional Buyers (QIBs), while no more than 15% and 10% of the net offer will be directed to Non-Institutional Investors (NIIs) and Retail Individual Investors (RIIs), respectively.
Founded in 2001, the Mumbai-based manufacturer became a pioneer in the Indian adult diaper segment with its flagship brand Friends, later expanding its range to include baby and feminine hygiene. The company has recently demonstrated significant improvement in its financial performance.
In the fiscal year 2024, Nobel Hygiene recorded a revised consolidated loss of 39.01 crore rupees. However, by the fiscal year 2026, the company achieved a net profit of 18.91 crore rupees due to an increase in operating revenue to 846.75 crore rupees. This recovery is attributed to increased margins and rapid debt reduction, which lowered total borrowings from 368.31 crore rupees in 2024 to 113.41 crore rupees in 2026.
Nobel Hygiene's EBITDA, reflecting operational profitability, grew to 84.76 crore rupees in the 2026 fiscal year, representing a healthy margin of 10.01%.
The corporate landscape remains highly competitive, as domestic enterprises face massive global conglomerates. In the fiscal year 2025, Unicharm India's standalone operations generated revenue of 3,950.59 crore rupees, and Kimberly-Clark India generated 1,090.99 crore rupees. To compete with these giants, Nobel Hygiene utilized government-backed initiatives.
The Mumbai-based company was selected under the Ministry of Textiles' manufacturing incentive scheme, receiving incentives totaling 35.05 crore rupees. Furthermore, government programs promoting subsidized sanitary pads contribute to fostering lifelong hygiene habits among the rural population. Evolving quality guidelines from the Bureau of Indian Standards also support market formalization by setting strict quality standards for absorbent products, which can eliminate low-quality imports.
The company's operations remain focused on the core categories of adult and baby diapers under its key brands Friends and Teddyy, which together account for over 77% of revenue.
According to a Redseer Strategy Consultants industry report commissioned by the company, the usage level of diapers in India holds enormous expansion potential. Redseer highlights that products for infant absorbent hygiene serve a large target base of approximately 113.10 million children aged 0 to 4 years in India, with a penetration rate of 26%–30%, leaving significant room for growth compared to global benchmarks as of March 31, 2026.
Meanwhile, the adult category continues to face social reluctance. As noted in the prospectus draft, despite this substantial need, penetration remains low—less than 6% for heavy incontinence as of March 31, 2026, because many people are unaware of specialized absorbent hygiene solutions and continue to rely on informal management methods.
To address these gaps, Nobel Hygiene's management, led by founder Kamal Kumar Johari, is focusing on educational campaigns for the target market and preparing to enter premium segments, such as disposable menstrual panties.