Nobel Hygiene Ltd., a prominent manufacturer of absorbent hygiene products, has officially filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an upcoming initial public offering (IPO).
The proposed IPO structure comprises a fresh issue of equity shares valued at up to ₹150 crore. Additionally, it includes an offer-for-sale (OFS) of up to 15,511,082 equity shares by a group of existing shareholders. These selling shareholders include promoters Kamal Kumar Johari and Kamini Kamal Johari, alongside investor entities like Orbit Investment Holdings Pte Ltd, Sixth Sense India Opportunities III, Bennett Trading LLP, and others.
Utilizing IPO Proceeds for Growth
According to the DRHP, the net proceeds generated from the fresh issue are earmarked for several strategic initiatives. A significant portion will go towards the prepayment or repayment of certain outstanding borrowings, aiming to strengthen the company's financial position. Furthermore, funds will be invested in Nobel Hygiene's subsidiary, Nobel Hygiene Baroda Pvt Ltd (NHBPL).
The company also plans to allocate proceeds to part-finance the augmentation of its production capacity at Halol. This expansion includes establishing a brownfield manufacturing-cum-warehousing facility on its existing Halol land and acquiring and installing a new adult diaper machine line. Any remaining funds will be utilized for general corporate purposes.
Market Presence and Financial Performance
Nobel Hygiene maintains a strong presence in the organized absorbent hygiene market, offering products across adult hygiene, baby hygiene, and underpads. In FY26, adult absorbent hygiene products contributed 49.25 percent of the company's operational revenue, while baby absorbent hygiene accounted for 45.32 percent. Its key brands, Friends and Teddyy, represented 37.85 percent and 39.63 percent of revenue, respectively, with B-Fit contributing 10.83 percent.
The company operates 14 manufacturing lines across its facilities in Nashik and Halol and exports its products to 19 countries, including Sri Lanka, UAE, Australia, and Mauritius.
Financially, Nobel Hygiene demonstrated robust growth in FY26. Revenue from operations increased by 14.56 percent year-on-year to ₹846.75 crore, up from ₹739.14 crore in FY25. EBITDA also saw a significant rise to ₹84.76 crore in FY26 from ₹65.57 crore a year earlier, improving the EBITDA margin to 10.01 percent from 8.87 percent. The company reported a substantial increase in restated profit for the year, climbing from ₹2.28 crore in FY25 to ₹18.91 crore in FY26.
Looking ahead, Nobel Hygiene intends to expand into the feminine absorbent hygiene segment with disposable period panties and deepen market penetration for its existing adult and baby hygiene businesses through innovation and additional manufacturing capacity.
Market Outlook
The DRHP indicates that India's adult absorbent hygiene market was valued between ₹2,050 crore and ₹2,150 crore in FY26, growing at a compound annual growth rate (CAGR) of approximately 26 percent since FY20. Projections suggest this market could reach ₹5,400 crore to ₹6,100 crore by FY31, implying a CAGR of 21-23 percent.
ICICI Securities, Motilal Oswal Investment Advisors, and SBI Capital Markets have been appointed as the book running lead managers for the issue.