H R Hygiene Products Limited (CIN: U74999GJ2016PLC093028), a Gujarat-based manufacturer of hygiene products including sanitary napkins under the Femiss brand, has filed its Draft Red Herring Prospectus (DRHP) with SEBI. The company is planning an SME IPO to fund expansion into diaper manufacturing and repay existing debt. While the exact price band and total issue size are not yet disclosed in the provided data, the identified use of proceeds amounts to ₹34.93 Crores. The IPO is scheduled to open on 29-Jul-2026.

Company Overview

H R Hygiene Products Limited was incorporated in 2016 and is headquartered in Rajkot, Gujarat. The company manufactures hygiene products catering to babies, young women, and the elderly through brands like Femiss, Womanica, ElderFit, and Bloom Baby.

Key operational highlights include:

• Product Focus: Sanitary napkins represent 95.33% of revenue in FY2026.
• Distribution: Pan-India presence across 28 states and 8 union territories via 202 distributors and major e-commerce platforms (Amazon, Flipkart, Meesho).
• Manufacturing: State-of-the-art facility spanning 32,780.88 sq. ft. with ISO 9001:2015, WHO-GMP, BIS, and CE certifications.
• Awards: Femiss Sanitary Pad received the National Award for Excellence in Healthcare 2020.

Offer Details

The company has outlined specific objects for the issue proceeds, though the final price band and lot size remain undisclosed in the current DRHP data.

Objects of Issue

Proceeds will be utilized as follows:

1. New Manufacturing Facility: ₹31.36 Crores for a diaper manufacturing unit (Unit 2) at Rajkot, Gujarat, with an installed capacity of 6 crore pieces annually.
2. Debt Repayment: ₹3.57 Crores for prepayment/repayment of loans.
3. General Corporate Purposes: Unspecified amount for initial development costs and operating expenses.

Total identified use of proceeds: ₹34.93 Crores.

Financial Highlights

The company has demonstrated consistent revenue and profit growth over the last three years. However, investors should note the negative operating cash flow in FY2025.

Balance Sheet & Cash Flow:

• Total Assets grew to ₹170.92 Cr in FY2026 from ₹48.87 Cr in FY2024.
• Operating Cash Flow was negative at -₹10.08 Cr in FY2025 but recovered to ₹1.58 Cr in FY2026.
• Debt-to-Equity ratio stands at 3.03x as of FY2026.

Risk Factors

Investors must consider the following material risks disclosed in the DRHP:

1. Product Concentration: 95.33% of FY2026 revenue came from sanitary napkins.
2. Customer Concentration: Top 10 customers contributed 80.41% of revenue in FY2026, with no long-term contracts.
3. Geographic Concentration: 77.02% of revenue was derived from Gujarat in FY2026.
4. Cash Flow Volatility: Negative operating cash flows of ₹10.08 Cr in FY2025.
5. Legal Proceedings: Outstanding tax proceedings aggregating ₹381.95 Lakhs.
6. Governance Concerns: Multiple changes in statutory auditors, with the latest change in April 2026.

Valuation & Peer Comparison

As the price band is not yet available, precise valuation metrics such as P/E ratio cannot be computed. The company operates in the Indian personal hygiene market, competing with larger FMCG players. Investors should benchmark the eventual issue price against peers in the hygiene sector once the price band is declared.

Bottom Line

H R Hygiene Products presents a growth story with expanding revenue and planned diversification into diapers. However, high concentration risks in product, geography, and customer base, along with governance flags regarding auditor changes, warrant careful scrutiny. The IPO opens on 29-Jul-2026; investors should wait for the price band disclosure before making investment decisions.