The shares of Brainbees Solutions, the parent company of FirstCry, will remain in focus on Thursday after the company approved a plan to participate in the initial public offering (IPO) of its subsidiary, Swara Baby, by selling a stake worth Rs 300 crore through the offer for sale (OFS) component.

In an exchange filing released after market hours on Wednesday, FirstCry said its board had approved participation in the OFS component of the proposed IPO by selling shares with a face value of Rs 2 each, aggregating up to Rs 300 crore.

Swara Baby will continue to remain a subsidiary of FirstCry after the IPO, the company added. The proposed public issue is subject to approvals from market regulator SEBI, stock exchanges BSE and NSE, and other regulatory authorities.

Swara Baby Products, a FirstCry-backed contract manufacturer of baby diapers, adult diapers and feminine hygiene products, is planning to file draft IPO papers with SEBI soon to raise up to Rs 1,000 crore, PTI reported last month.

According to the report, the proposed IPO will comprise a fresh issue of shares as well as an OFS by existing shareholders. JM Financial and Avendus Capital have been appointed as the book-running lead managers for the issue.

The company manufactures disposable hygiene products across the baby care, adult incontinence and feminine hygiene segments. Established as a single-product company in 2021, Swara Baby has since expanded its portfolio to seven product categories, including baby pant-style diapers, baby tape-style diapers, adult pant-style diapers, adult tape-style diapers, sanitary napkins and panty liners.

Also read: FirstCry-promoted Swara Baby to file papers for up to ₹1,000-cr IPO

FirstCry shares have gained more than 2% over the past week and month but have declined more than 20% so far in 2026. The stock is down over 39% in the past year. The company currently has a market capitalisation of more than Rs 11,913 crore.

The company narrowed its consolidated net loss to Rs 30.30 crore in Q1 FY26, compared with Rs 77 crore in the year-ago period. It reported a 12% rise in revenue to Rs 2,163 crore in Q1 FY26, compared with Rs 1,930 crore in the corresponding quarter of the previous financial year.

For the full year, net loss narrowed by 23%, while revenue rose 12%, according to the company's filing. EBITDA for FY26 grew 24% year-on-year.

Also read: Brainbees Solutions Q4 Results